The Shah Deniz (SD) field was discovered in 1999. It is one of the world’s largest gas-condensate fields, with 40 trillion cubic feet - over 1 trillion cubic metres - of gas in place. It is located on the deep water shelf of the Caspian Sea, 70 km south-east of Baku, in water depths ranging from 50 to 500 m.
BP operates Shah Deniz on behalf of its partners in the Shah Deniz Production Sharing Agreement (PSA).
Shah Deniz is structured as an unincorporated Joint Venture (JV) partnership. BP is the operator of the Shah Deniz JV.
Shah Deniz Stage 1 started operations in 2006. It has the capacity to produce about 9 billion cubic meters of gas per annum (bcma) and approximately 50,000 barrels a day of condensate. BP and Shah Deniz partners have invested $6 billion in Shah Deniz Stage 1 up to date.
Despite the complexities of drilling the wells, building a platform, constructing an onshore terminal and laying a 700 km South Caucasus pipeline (SCP) through Azerbaijan and Georgia to Georgia - Turkey border, Shah Deniz Stage 1 was developed in only seven years. Since Shah Deniz started production, it has proved a secure and reliable supplier of gas to Azerbaijan, Georgia and Turkey.
Last year the field produced about 9.8 billion cubic metres (about 345.5 billion cubic feet) of gas and 2.48 million tonnes (19.6 million barrels) of condensate or about 26.8 million cubic metres of gas per day (946 million standard cubic feet per day) and 53,740 b/d of condensate.
Since the start of Shah Deniz production in late 2006 till the end of 2013, about 47.3 billion standard cubic metres (1,671 billion standard cubic feet) of Shah Deniz gas, and about 99.5 million barrels (12.6 million tonnes) of Shah Deniz condensate has been produced.