Azerbaijan’s Shah Deniz-2 project reaches key production milestones

The State Oil Company of the Azerbaijan Republic (SOCAR) has announced that 11.5 million tons of condensate and 66.6 billion cubic metres of gas were produced as part of the Shah Deniz-2 project since the beginning of commercial production on June 30, 2018, and up to December 1, 2024. 

On December 17, 2013, the Shah Deniz consortium signed the final investment decision for the second phase of development of the Shah Deniz gas condensate field, located in Azerbaijan’s sector of the Caspian Sea, Caliber.Az reports via local media. 

Gas transportation from Azerbaijan to Europe began as part of the Shah Deniz-2 project.

The Shah Deniz field was discovered in 1999. It is one of the world’s largest gas-condensate fields. It is located on the deep water shelf of the Caspian Sea, 70 km south-east of Baku, in water depths ranging from 50 to 500 m.

bp operates Shah Deniz on behalf of its partners in the Shah Deniz Production Sharing Agreement (PSA).

Shah Deniz is structured as an unincorporated Joint Venture (JV) partnership. bp is the operator of the Shah Deniz JV. Shah Deniz Stage 1 began operations in 2006. It has the capacity to produce around 10 billion cubic meters of gas per annum (bcma) and approximately 50,000 barrels a day of condensate.

During 2014, the existing Shah Deniz facilities were further de-bottlenecked which increased their production capacity from 27.3 million standard cubic metres to 29.5 million standard cubic metres of gas per day.

By Naila Huseynova