BP’s regional president talks on work within Shah Deniz Stage 2

BP is just in the process of bringing on the next four wells in the second cluster as part of the development of the Azerbaijani Shah Deniz Stage 2 gas condensate field, Gary Jones, BP’s regional president for Azerbaijan, Georgia and Turkey, said in an interview with Energy Intelligence on Jan. 24.

"So, there's various stages of additional gas coming through to ramp up, eventually into an additional 16 Bcm per annum,” he said.

"The initial Shah Deniz output was about 10 Bcm per year,” Jones said. "Once Shah Deniz 2 is fully on, with all four clusters, we will then get an additional 16 Bcm/yr, so there will be 26 Bcm/yr of Shah Deniz capacity of which 10 Bcm/yr will eventually end up in southern Europe.”

"We'll continue ramping up the gas due to go to Turkey,” he said.

"There's a ramp-up schedule that goes through the next few years, building up the sales to Turkey,” Jones said. "We've got six wells on at the moment. We'll have another two on in February, I would think, so that'll be eight wells on, and there are 26 wells for Shah Deniz 2, a good proportion of which have already been drilled, so that gives you an idea of where we are.”

Shah Deniz 2 is the starting point of the new Southern Gas Corridor, which will deliver Caspian resources directly to European gas markets for the first time. At plateau, the project is expected to add 16 billion cubic meters of gas per year ( bcma) to the existing production. Total production from the Shah Deniz field will be up to 26 bcma of gas and up to 120,000 barrels of condensate a day.

The contract for the development of the Shah Deniz offshore field was signed on June 4, 1996.

The contract for the development of Shah Deniz field was extended from 2036 to 2048, while the shares of SOCAR and BP (project operator) in the project increased up to 16.7 percent and 28.8 percent, respectively, in accordance with the documents signed on December 17, 2013 in Baku.

Share distribution among the parties to the agreement: 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.