Works on Shah Deniz-2 underway according to plan, BP says
By Aynur Karimova
The work on the second stage of development of Azerbaijan’s giant Shah Deniz gas and condensate field in the Caspian Sea is underway in accordance with the approved plan and budget.
This remark was made by Gordon Birrell, the regional president of British BP Company for Azerbaijan, Georgia and Turkey on June 3.
He told journalists that to date, eight wells have been drilled, which is sufficient to start gas production on time.
"In parallel, two platforms for the work at the field are being constructed," Birrell noted adding that the assembly of two steel jackets and two topsides of the platforms is already underway.
He went on saying that works on modernization of Israfil Huseynov pipe lay barge have been completed adding that engineers will be able to start the underwater pipe laying work in coming days.
The large compressors and other equipment are ready for delivery to Azerbaijan and installation on the platforms, Birrell added.
The Shah Deniz field’s gas reserves are estimated at 1.2 trillion cubic meters. The contract for development of the field was signed on June 4, 1996. The shareholders are BP, operator (28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NICO (10 percent) and TPAO (19 percent).
As part of the implementation of the Shah Deniz project, the annual gas production volume will increase from 9 billion cubic meters (within the first phase) by an additional 16 billion cubic meters in the second phase. Two offshore platforms will be installed and over 20 subsea wells will be drilled to produce additional volumes of gas within Shah Deniz-2 project.
As part of the second stage of the field’s development, gas will be exported to Turkey and European markets by expanding the South Caucasus gas pipeline and completing construction of the Trans-Anatolian and Trans-Adriatic gas pipelines.
The volume of gas produced at Shah Deniz field stood at 9.9 billion cubic meters in 2014, while the volume of condensate production at this field totaled 2.3 million metric tons (18.7 million barrels), compared to 9.8 billion cubic meters of gas and 2.48 million metric tons of condensate (19.6 million barrels) in 2013.
In late May, Black Sea Trade and Development Bank said it is considering providing a long-term debt to Lukoil Overseas Shah Deniz Ltd. for the company's share in the second stage of development of the Shah Deniz field.
The project will include two additional bridge-linked offshore platforms, expansion of the Sangachal terminal and expansion of the South Caucasus pipeline - a gas export pipeline system from Azerbaijan through Georgia to the Turkish border.
Black Sea Trade and Development Bank was founded in 1997 to support the economic development of the Black Sea countries and to strengthen regional cooperation.
The founders and shareholders of the bank are Russia, Greece, Turkey, Bulgaria, Ukraine, Romania, Albania, Azerbaijan, Armenia, Georgia and Moldova. Azerbaijan’s share in the bank’s capital is 5 percent.
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Aynur Karimova is AzerNews’ staff journalist, follow her on
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