bp-Azerbaijan targets mid-2029 for first low-pressure gas production from Shah Deniz

bp-Azerbaijan expects to receive the first low-pressure gas from the Shah Deniz field by mid-2029.

"As gas fields are developed, reservoir pressure decreases, leading to a reduction in gas flow rates," the company told Report, Caliber.Az reports.

"Following the beginning of production at the Shah Deniz field, the natural process of declining reservoir pressure began. Gas compression is widely used in the oil and gas industry and has proven to be a reliable method for enhancing key reservoir characteristics. A compression platform project is planned to be implemented to access and produce low-pressure gas reserves, as well as to maximize the extraction of these reserves in the Shah Deniz contract area," the company said. 

The project includes the construction of the electric-powered, unmanned Shah Deniz Compression (SDC) platform, the installation of subsea in-field gas pipelines for gas export/import between the existing Shah Deniz Alpha (SDA) and Shah Deniz Bravo (SDB) platforms, as well as the laying of electrical and fiber-optic cables to supply electricity to the SDC and provide backup power to the SDA and SDB platforms.

The company emphasised that the Shah Deniz Compression platform will be installed 10 kilometres from the Shah Deniz Alpha platform and 3 kilometres from the Shah Deniz Bravo platform, at a water depth of 85 metres. Gas which will be produced from the Shah Deniz Alpha and Shah Deniz Bravo platforms will first be transferred to the new compression platform for processing, and then it will be sent to the Sangachal terminal. 

"The installation of the SDC platform at the Shah Deniz field will extend the lifespan of both the wells and the field itself. The first production of low-pressure gas from the Shah Deniz Alpha platform is scheduled for mid-2029, while the Shah Deniz Bravo platform is expected to begin production in mid-2030," the company said. 

The company noted that the work for the new project will be carried out by using the existing infrastructure of the SDA and SDB platforms, as well as the Sangachal terminal. No new infrastructure or expansion of the terminal’s territory will be required. 

"The support block, upper structures of the SDC platform, and components of the subsea infrastructure are planned to be built in Azerbaijan. Tender procedures for selecting construction contractors are expected to be completed by the end of the second quarter of 2025. The majority of the onshore construction and commissioning of these facilities is scheduled to take place between 2026 and 2028," the company said. 

By 2027, the number of local workers involved in the construction phase of the SDC project is expected to reach approximately 2,600 people. As the SDK platform will operate without on-site personnel, only a limited number of maintenance staff will be involved during the operational phase. 

Earlier, bp-Azerbaijan spokesperson Tamam Bayatli announced that a decision on the final investment decision (FID) will be made later this year. 

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