Shah Deniz 2 starts production from East South flank

8 July 2021 10:00 (UTC+04:00)

By Ayya Lmahamad

The Shah Deniz consortium announced the commencement of production from the East South flank at 540m water depth, the company's press service has reported.

Production from this deep-water flank started up on June 30 this year, following the successful completion of all related offshore construction and commissioning works.

The new East South production flank consists of four wells, two new flowlines and a number of subsea structures connected to the Shah Deniz reservoir.

Moreover, it is expected that the flank will be at full production rates in the third quarter of 2021.

“This is the biggest milestone we had planned to achieve in Shah Deniz this year and we are very proud to have achieved it safely, on schedule and within the budget despite the challenges and restrictions caused by the covid-19 pandemic,” BP’s Regional President for Azerbaijan, Georgia and Turkey Gary Jones has said.

Furthermore, Jones emphasized that following the completion of the main Shah Deniz 2 infrastructure project and achievement of first gas in 2018, the team has been working hard to deliver new wells on the remaining flanks and start up new infrastructure in the Shah Deniz system.

He noted that the newly-started East South flank is expected to add about 90,000 barrels of oil equivalent per day to the Shah Deniz field production using two manifolds and over 40km of flowlines to the Shah Deniz 2 facilities.

Additionally, the company underlined that a total of 400 million standard cubic feet of gas per day is expected to be added to the current production. This will enable Shah Deniz 2 to increase overall production to well over 2.4 billion standard cubic feet per day across the assets.

BP first arrived in Azerbaijan and opened its first office in Baku in June 1992. Over the past years, in partnership with the Azerbaijani government and its co-venturers, the BP-operated world-class projects such as Azeri-Chirag-Gunashli (ACG), Shah Deniz, Baku-Tbilisi-Ceyhan (BTC) and South Caucasus Pipeline (SCP) have contributed to the development of the Caspian Sea as a modern hydrocarbon province.

The contract on the development of the Shah Deniz gas field was signed in 1996. Shareholders of Shah Deniz project are: BP (operator, 28.8 percent), TPAO (19 percent), AzSD (10 percent), SGC Upstream (6.7 percent), PETRONAS (15.5 percent), LUKOIL (10 percent) and NICO (10 percent).

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Ayya Lmahamad is AzerNews’ staff journalist, follow her on Twitter: @AyyaLmahamad

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