Shah Deniz Stage 2

Shah Deniz Stage 2, or Full Field Development (FFD) is a giant project that will add a further 16 billion cubic meters per year (bcma) of gas production to the approximately 9 bcma produced by Shah Deniz Stage 1.

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Shah Deniz 2 progress

Around $28 billion in capital investment will be required to produce the gas and transport it to the Georgia-Turkey border. From there, additional pipeline systems will deliver 6 bcma of gas to Turkey and a further 10 bcma of gas to markets in Europe, in a route known as the Southern Gas Corridor. Shah Deniz gas will travel 3,500 kilometres, to elevations of over 2,500 metres, and over 800 metres below the sea.  

Shah Deniz Stage 2, one of the largest gas developments in the world, will help increase European energy security by bringing Caspian gas resources to markets in Europe for the very first time. 

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The current concept for Shah Deniz Stage 2 includes:
  • two new bridge-linked offshore platforms.
  • 26 gas production wells which will be drilled with 2 semi-submersible rigs.
  • 500 km of subsea pipelines will link the wells with the onshore terminal.
  • upgrade of the offshore construction vessels
  • expansion of the Sangachal terminal to accommodate the new gas processing and compression facilities.
In the first half of 2016, implementation of the Shah Deniz Stage 2 project continued successfully. The project is now over 77% complete in terms of engineering, procurement and construction, and remains on target for first gas from Shah Deniz Stage 2 in 2018.

Project activities continue at all offshore and onshore sites and fabrication yards of the country including the Sangachal Terminal, ATA (AMEC/Tekfen/Azfen) yard near Baku, Baku Deepwater Jackets Factory and along the pipeline route. 

In the second quarter of 2016, the pipe-lay barge Israfil Huseynov completed the complex installation of the first Shah Deniz flowline from the North Flank cluster to the platform location. The barge is now installing the other flowline before it heads to the West Flank to install the two flowlines there. 
Following the float-out of the subsea construction vessel Khankendi of the dry dock, it recently received the main crane for installation. The vessel is now getting ready for commissioning and certification. Once completed, this new vessel will be deployed to the Shah Deniz 2 area for the construction of the subsea structures. 

The Derrick Barge Azerbaijan has successfully installed all four North Flank trees and subsea infrastructure.

In the first half of 2016, we started commissioning activities on the two Shah Deniz 2 topside units at the ATA yard and all of the 50 living quarter modules have already been installed on the quarters and utilities platform. At the BDJF (Baku Deepwater Jackets Factory) yard, all risers and both huge flotation tanks have been installed on the production and risers jacket, and the final construction and testing is underway before the sail away later this year.

In the second quarter of 2016, over 24,000 people were involved in construction activities across all main contracts in Azerbaijan and over 80% of them were Azerbaijani nationals.