Azernews.Az

By Aynur Jafarova

The Shah Deniz 2 development project will reach its peak production in 2022, which will last for seven to eight years, according to statement made during a public hearing of the report on the social and environmental impacts of the Shah Deniz 2 project.

"Two drilling rigs will be sufficient to implement the second phase of the development of the giant Shah Deniz gas condensate field," Ilgar Mammadzade, head of the project, said at the hearings.

According to him, it is not planned to construct additional rigs within Shah Deniz 2 and in accordance with the schedule of work, the Heydar Aliyev and Istiqlal drilling rigs will sufficient to carry out necessary operations.

"Construction of an additional drilling rig may be considered in case there is a need under new projects. The schedule of drilling operations under Shah Deniz 2 has been outlined and the two listed rigs will be sufficient to implement this project," Mammadzade said.

He went on to say that despite plans to drill more than 20 wells within Shah Deniz 2, construction of two platforms is considered economically viable.

Furthermore, head of the group on preparation of the environmental impact report Bill Boulton said that the process of drilling, completion and pre-drilling within the second phase of the Shah Deniz field development is planned to continue until 2022.

During the public hearing it was noted that drilling is planned to be undertaken from five clusters and the entire process will be completed in 2022. The first gas is expected to be produced in 2018.

The process of building platforms as well as installation of basic blocks, topsides and a bridge will be completed in the first half of 2017.

The Shah Deniz field, which is one of the world's largest gas-condensate fields, was discovered in 1999. Its reserves are estimated at 1.2 trillion cubic meters of gas. Overall, the field has proved to be a secure and reliable supplier of gas to Azerbaijan, Georgia and Turkey as well as Europe.

According to British BP's annual report, the volume of gas production from Azerbaijan's giant Shah Deniz field in the Caspian Sea amounted to approximately 7.73 billion cubic meters of gas and nearly 16.1 million barrels of condensate in 2012.

According to the report, internal and external exports from the Shah Deniz field amounted to around 37.6 billion cubic meters of gas, as well as 80 million barrels of condensate from the beginning of production at the end of 2006 to the end of 2012.

Currently, the potential daily volume of production at Shah Deniz is 27.3 million cubic meters of gas (depending on demand) and 55,000 barrels of condensate.