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.
During the first nine months of 2014, the Shah Deniz field produced 7.25 billion standard cubic metres (about 256 billion cubic feet) of gas and about 1.72 million tonnes (13.8 million barrels) of condensate. That is 26.6 million cubic metres of gas per day (over 983 million standard cubic feet per day) and 50,450 barrels per day of condensate.
As a result of debottlenecking of existing facilities in 2013, Shah Deniz Stage 1 capacity was increased to 966 million standard cubic feet per day and approximately 55,000 barrels per day of condensate. The Shah Deniz partners have also agreed terms with SOCAR for further expansion of production capacity to around 1,040 million standard cubic feet per day by the end of 2014.