2018 was next mile­stone year for Shah Deniz field

Azer News - - Front Page - By Le­man Mam­madova

The to­tal gas pro­duc­tion from the Shah Deniz field has reached 100 bil­lion cu­bic me­ters.

The mile­stone was achieved at the end of De­cem­ber, ex­actly 12 years af­ter the first an­nounce­ment of the start-up of com­mer­cial gas pro­duc­tion from the field and op­er­a­tions of the South Cau­ca­sus Pipe­line, BP Azer­bai­jan told Trend.

De­cem­ber 15, 2006, marked the start of the first stage of the de­vel­op­ment of the field and since then gas vol­umes have been suc­cess­fully de­liv­ered to the mar­kets of Azer­bai­jan, Ge­or­gia and Turkey.

2018 was des­tined to be­come the next big­gest mile­stone year for Shah Deniz. It marked the com­mence­ment of com­mer­cial gas de­liv­er­ies to Turkey from Shah Deniz 2 as planned on 30 June and the achieve­ment of first gas pro­duc­tion from Shah Deniz Bravo plat­form at the end of July.

Since 2006, more than 196 mil­lion bar­rels of con­den­sate have been pro­duced in the Shah Deniz field in to­tal.

Cur­rently, pro­duc­tion is also car­ried out at 10 wells on the plat­form "Al­pha", and six wells on the plat­form "Bravo".

Shah Deniz field cov­ers ap­prox­i­mately 860 square kilo­me­ters. The field was dis­cov­ered in 1999.

Shah Deniz is a gi­ant gas con­den­sate field, re­serves of which are es­ti­mated at 1.2 tril­lion cu­bic me­ters of gas and 240 mil­lion tonnes of con­den­sates. Within the sec­ond stage of field de­vel­op­ment, the vol­ume of gas pro­duc­tion can be in­creased to 24 bil­lion cu­bic me­ters per year, ac­cord­ing to fore­casts.

The dis­cov­ery of the gi­ant Shah Deniz field and the suc­cess­ful im­ple­men­ta­tion of the project made Azer­bai­jan a coun­try that can ex­port a large amount of nat­u­ral gas to the world.

The Shah Deniz gas field is still the big­gest dis­cov­ery of BP af­ter the Prud­hoe Bay oil­field in Alaska. SOFAZ (Azer­bai­jani Oil Fund) has so far earned $ 2.5 bil­lion from de­vel­op­ment of Shah Deniz.

Shah Deniz Con­sor­tium has spent $ 1.558 bil­lion on the de­vel­op­ment project of the Shah Deniz gas con­den­sate field lo­cated in the Azer­bai­jani sec­tor of the Caspian Sea.

The agree­ment on the ex­plo­ration, de­vel­op­ment and shared pro­duc­tion of promis­ing ar­eas of Shah Deniz was signed on June 4, 1996. The agree­ment on the di­vi­sion of pro­duc­tion was rat­i­fied on Oc­to­ber 17, 1996.

The project par­tic­i­pants are BP (oper­a­tor - 28.8 per­cent), AzSD (10 per­cent), SGC Up­stream (6.7 per­cent), Petronas (15.5 per­cent), LUKOIL (10 per­cent), NİKO (10 per­cent) and TPAO (19 per­cent).

Shah Deniz 2 is the start­ing point of the new South­ern Gas Cor­ri­dor, which will de­liver Caspian re­sources di­rectly to Euro­pean mar­kets for the first time, through Italy, Ge­or­gia, Turkey, Greece, Bul­garia, Al­ba­nia and the seabed of the Adri­atic Sea.

The South­ern Gas Cor­ri­dor, $ 40 bil­lion worth project, en­vis­ages the trans­porta­tion of gas to Turkey and Europe through the pipe­line, which will be op­er­ated within the sec­ond stage of the Shah Deniz gas con­den­sate field project in the Azer­bai­jani sec­tor of the Caspian Sea.

The South­ern Gas Cor­ri­dor con­sists of four projects: Shah Deniz 2, Ex­pan­sion of South Cau­ca­sus Pipe­line (Baku-Tbil­isi-Erzu­rum), the Trans Ana­to­lian Pipe­line (TANAP) and Trans Adri­atic Pipe­line (TAP). The projects have an es­ti­mated in­vest­ment cost of ap­prox­i­mately $40 bil­lion.

Three of four projects have been com­pleted. Ap­prox­i­mately 82 per­cent of the TAP con­struc­tion project was com­pleted. The project will be to­tally oper­a­tional in 2020.

At the ini­tial stage, it is planned to trans­port 6 bil­lion cu­bic me­ters of gas to Turkey and 10 bil­lion cu­bic me­ters of gas to Europe. Due to this gi­ant project Azer­bai­jan will be­come im­por­tant gas sup­plier for Europe.

On May 29, Baku hosted the launch of the first phase of the South­ern Gas Cor­ri­dor project, and on June 12, the open­ing cer­e­mony of the TANAP took place in the Turk­ish prov­ince of Eskise­hir.

Thus, the first gas from the Azer­bai­jani Shah Deniz field has al­ready gone through the first seg­ment of the South­ern Gas Cor­ri­dor - from the San­gachal ter­mi­nal to the ex­panded South Cau­ca­sus Pipe­line.

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