‘Shahdeniz - project of today and tomorrow’
Dear co-chairs, ladies and gentlemen! Good afternoon.
I’m very pleased to join you all today.
This annual gathering is getting more and more important.
And there is a reason for this.
The world has become a very different place since we last met.
The pandemic, conflicts, energy crisis, and now the world economy struggling to cope.
Due to all of this, the role of energy is being seen now through a different lens.
Getting to net zero is still an issue in front of mind.
However, people and governments are now also focusing on where their energy will come from and how much it will cost.
The world needs energy that is secure, affordable and lower carbon.
This makes the role of the projects like SGC and Shah Deniz grow even more.
As they help address all three of those needs.
I’m pleased to say that Shah Deniz continues to deliver with a fantastic performance.
In 2022, this giant field produced over 25 billion cubic metres of gas, exceeding the plan.
And it did this safely with the phenomenal plant, well and export reliability of almost 100%, and a world-class operating efficiency.
Today, Shah Deniz remains bp’s largest gas producer.
Currently, its facilities can produce about 74 million standard cubic metres of gas per day.
Mid last year we started up the second deep water flank on Shah Deniz - West South.
And we continue working to reach plateau rates of 26 billion cubic meters of gas per year.
For this, we are now focusing on there maining subsea construction activities and the wells programme.
Shah Deniz’s subsea production system covers a huge area of about 200 square kilometres.
It consists of advanced subsea technology and complex infrastructure that link gas and condensate in the 7,000 metres deep reservoir with the Shah Deniz platforms and further with the Sangachal terminal.
This amazing subsea production hub is the first in the Caspian and the largest operated by bp globally.
And we are expanding it further.
We are also progressing our wells programme, with total of 21 drilled and 19 completed wells out of the planned 26.
14 of these are already producing across the four flanks.
We are planning to put three more wells onproduction this year, including the start-up ofthe remaining fifth flank – East North.
This will help further ramp up the currentvolumes through SGC.
Shah Deniz and SGC are clearly today’s, but also tomorrow’s top story.
There are significant expansion opportunities for both projects.
Now, that there is so much demand for gas supply, this expansion has become even more critical.
SGC is designed as scalable so that its initial throughput capacity can be expanded if and when needed.
We are currently working with SOCAR and other partners to see how we can use this to increase gas supplies to Europe.
Moreover, we are looking at the potential new sources of gas.
We have just spudded an exploration well on Shah Deniz to look for more gas beneath the currently producing horizons.
We have also started an appraisal well from Chirag – ACG’s very first platform - to explore the deep gas reservoirs under the producing oil field.
In parallel, we are evaluating how we can electrify our operations instead of powering them using gas.
The electrification of the Sangachal terminal could be a good start.
Replacing the Sangachal gas turbines with grid access would allow us to export the displaced gas through SGC.
As you can see, there are many exciting opportunities ahead.
So, in closing, let me go back to where I started.
Both Shah Deniz and SGC can further contribute to the energy transition and security of supply.
Azerbaijan has vast potential and strategic plans on boosting gas supplies through SGC.
We have been privileged and proud to develop and operate the country’s major energy projects over the last 30 years, hand in hand with SOCAR and other co-venturers.
Now, as the long-term and reliable partner, we are ready to continue supporting the country as it realizes its plans for SGC.
Thank you for your attention.