BP starts producing gas from northeast flank at Azerbaijan's Shah Deniz field

BAKU. Feb 27 (Interfax) - BP has started to produce gas from the northeastern flank under Stage 2 of the development of the Shah Deniz field offshore Azerbaijan.

"Gas production under Shah Deniz Stage 2 from the northeast flank began in February 13. Prior to this, all associated construction work and production tests on the northeast flank were successfully completed and the system was fully commissioned," BP in Azerbaijan said in a statement.

The company said the northeast flank currently had five wells, two production manifolds, two new flow lines with a total length of about 30 km and several submarine installations connected to the gas condensate reservoir.

"Production capacity at Shah Deniz is currently around 79 million cubic meters of gas per day or 29 bcm per year," it said.

Shah Deniz produced 209 bcm of gas and 45 million tonnes of condensate between 2006, when it went on stream, and the beginning of January 2024, BP said.

Wells on the west, southeast, southwest and northeast flanks will be completed and gradually put into operation by 2027, it has been reported.

The contract for the development of the Shah Deniz field was signed in Baku in 1996. Equity participation in the contract is currently as follows: BP , operator, with 29.99%; Lukoil - 19.99%; TPAO - 19%; Cenub Qaz Dehlizi - 21.02%; and NICO - 10%.

The Shah Deniz consortium shareholders signed a final investment decision on Stage 2 in December 2013. Its cost is estimated at $28 billion. The peak annual production volume will be 16 bcm of gas, of which 10 bcm is designated for export to Europe and 6 bcm to western regions of Turkey.

Gas is currently produced at the Shah Deniz field at the Alpha platform in Stage 1 of and at the Bravo platform in Stage 2.