Azerbaijan's Shah Deniz field reaches 237 billion cubic metres of gas extraction since 2006 BP Reports

Since production began in 2006, approximately 237 billion normal cubic metres of gas have been extracted from Shah Deniz field in Azerbaijan’s Caspian Sea sector, according to BP’s Vice President for the Caspian Region, Bakhtiyar Aslanbayli.

Aslanbayli also revealed that over the same period, some 49 million tonnes (around 394 million barrels) of condensate have been produced from the field, Caliber.Az reports per local media.

He highlighted that BP and its partners have invested approximately $30 billion in Shah Deniz operations, with the majority of this capital directed towards the Shah Deniz-2 project.

The State Oil Fund of Azerbaijan (SOFAZ) has benefited significantly from the development, receiving over $7.7 billion in revenue from Shah Deniz by the end of 2024.

The Shah Deniz exploration and production sharing agreement (PSA) was initially signed on 4 June 1996, and the production sharing agreement was ratified on 17 October 1996. The field, located 70 kilometres southeast of Baku, was discovered in 1999. In a key development, the PSA was extended in December 2013, with its term now running until 2046.

The partnership structure for the Shah Deniz field is as follows: BP, as the operator, holds a 29.99% stake, followed by Lukoil (19.99%), TPAO (19%), NICO (10%), the Southern Gas Corridor (16.02%), and MVM (5%).

This long-standing collaboration continues to play a crucial role in Azerbaijan’s energy sector, with significant implications for the region’s gas exports and economic growth.

By Aghakazim Guliyev