Shah Deniz Stage-2 to go for Full Field Development
The London-based BP and its partners, Statoil from Norway, the State Oil Company of Azerbaijan (SOCAR), Total from France, Lukoil from Russia, the National Iran Oil Company (NIOC), and Türkiye Petrolleri Anonim Ortaklığı (TPAO) from Turkey, have made the final investment decision (FID) for the Shah Deniz Stage-2 project in Azerbaijan.
Shah Deniz Stage-1 started production in 2006 and since then it delivers 860 million cubic feet per day (cf/d) of natural gas.
– Double the South Caucasus Pipeline (SPC) across Azerbaijan and Georgia
– Build the Trans Anatolian Gas Pipeline (TANAP) through Turkey
– Construct the Trans Adriatic Pipeline (TAP) from Turkey to Italy through Greece and Albania
The whole project will require $45 billion capital expenditure out of which the Shah Deniz Stage-2 and the SPC projects will represent $28 billion investment.
BP Southern Gas Corridor to supply south Europe
But the selection of this Southern Gas Corridor to Europe has been decided in expecting additional sources of supply coming from other fields in Azerbaijan, but also from the north of Iraq and later on from Iran.
Because of the giant size of each individual projects,BP and its partners have taken different stakes in each section.
– BP 28.8%
– SOCAR 16.7%
– Statoil 15.5%
– Lukoil 10%.
– NIOC 10%
– TPAO 9%
In parallel Statoil will take 20% share in TAP project but will stand out of TANAP project.
The challenges of the Shah Deniz Stage-2 project relies not only in its size and location but also in the high pressure and high temperature of the reservoir.
For this Shah Deniz full field development, BP and its partners are planning to build:
– Two offshore bridge-linked platforms
– 26 drilling wells
– Gas gathering systems with 500 kilometers of subsea pipelines
In making the final investment decision now, BP and its partners, Statoil, SOCAR, Total, Lukoil, NIOC, and TPAO are targeting the first production in 2018 with first deliveries in Europe through the TANAP and TAP pipelines projects in 2019.