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 began 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 $8 billion in Shah Deniz Stage 1 to date.
Between the start of production and the end of the third quarter of 2014, about 55.2bcm (1,950 billion standard cubic feet) of gas, and about 113.3 million barrels (14.2 million tonnes) of Shah Deniz condensate has been produced.
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 the Turkish border, Shah Deniz Stage 1 was developed in only seven years. Since Shah Deniz has proved a secure and reliable supplier of gas to Azerbaijan, Georgia and Turkey.
In 2014, the field produced 9.9 billion standard cubic metres of gas and 2.3 million tonnes (18.7 million barrels) of condensate
During 2014, the existing Shah Deniz facilities were further de-bottlenecked which increased their production capacity from 27.3 million standard cubic metres to 29.5 million standard cubic metres of gas per day.