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  4. Go-ahead for next phase of development of giant Shah Deniz gas field

Go-ahead for next phase of development of giant Shah Deniz gas field

Release date:
3 June 2025

The Shah Deniz consortium today announced it has taken the final investment decision (FID) for the new Shah Deniz Compression (SDC) project, the next stage of development of the giant Shah Deniz gas field in the Azerbaijan sector of the Caspian Sea.


Shah Deniz participating interests are: bp (operator – 29.99%), LUKOIL (19.99%), TPAO (19.00%), SGC (16.02%), NICO (10.00%) and MVM (5.00%).


The $2.9 billion SDC project, which follows the previous two stages of the field’s development, is designed to access and produce low pressure gas reserves in the field and maximize resources recovery. The project is expected to enable around 50 billion cubic metres of additional gas and approximately 25 million barrels of additional condensate production and export from the field.


The official signing of the SDC FID took place today on the sidelines of Baku Energy Week.

 

“The Shah Deniz Compression project marks an important new chapter in Azerbaijan’s energy story. It reflects our commitment to long-term resource development, technological advancement, and international partnership. This investment will further strengthen Shah Deniz’s role as a vital energy source for the region and beyond, while creating new opportunities for our local economy and workforce. The use of electrically powered, unmanned compression platform technology represents a modern, efficient approach to offshore development in the region, while the focus on utilizing local construction resources and expertise highlights our commitment to building national capacity and supporting economic growth. We thank all our partners for their continued trust and cooperation. SOCAR remains committed to delivering this project safely, efficiently, and in a way that maximizes benefits for Azerbaijan and our partners.”

 

Rovshan Najaf, President of SOCAR

 

“This significant project will enable Shah Deniz - one of the largest and most complex gas fields in the world - to continue as a major supplier of global energy for decades to come and help maximize overall production recovery from this giant field.  I would like to thank the Government of Azerbaijan, SOCAR and our co-venturers in Shah Deniz for their support and cooperation in our journey to success.”

 

Gary Jones, regional president of bp, the operator of Shah Deniz

 

The project involves installation of a new compression facility – an electrically-powered unmanned compression platform, or Normally Unattended Installation (eNUI). It will be installed in 85 metres water depth, approximately 3 kilometres from the existing Shah Deniz Bravo (SDB) platform. 

 

With four 11-MW compressors onboard, the SDC platform is designed to serve as a host facility for gas compression from both the Shah Deniz Alpha (SDA) and SDB platforms, meaning that before flowing to the Sangachal terminal onshore, export gas from the platforms will be compressed at SDC. 

 

The project also includes several associated facilities to be installed offshore in the Shah Deniz contract area, including:

  • Infield subsea gas pipelines to and from the existing SDA and SDB platforms' gas export lines.
  • A combined power and fiber optic cable from the Sangachal terminal to the SDC platform to power the facility.
  • A backup interconnector power and fiber optic cable from SDB to the SDC platform.

Additionally, the project encompasses brownfield works to be undertaken at SDA, SDB, and the Sangachal terminal.


Construction activities are planned to commence in late 2025, with completion expected in 2029 to be ready to receive first gas for compression from the SDA platform in 2029 and from the SDB platform in 2030. These activities will take place in-country utilizing local resources and creating up to 4,000 jobs.

 

Notes to editors

 

  • The Shah Deniz field, located in the Azerbaijan sector of the Caspian Sea, was discovered in 1999 – with approximately 1 trillion cubic metres of gas and 2 billion barrels of condensate initially in place.
  • Gas export from the Shah Deniz stage 1 development started in 2006 initially to Azerbaijan, Georgia and Türkiye, and later, as part of Shah Deniz 2 through the expanded South Caucasus Pipeline to Türkiye in June 2018 and to Europe in December 2020.
  • Since start-up Shah Deniz has produced approximately 243 billion cubic metres of gas and 50 million tonnes of condensate.
  • In 2024, Shah Deniz produced approximately 28 billion standard cubic metres of gas and more than 4 million tonnes (around 35 million barrels) of condensate.

 

Further information:

 

Tamam Bayatly, bp’s Baku press office, telephone: (+994 12) 525 58 95;

bp group press office in London, telephone: (+44) 7831 095541