Shah Deniz Stage 1

Shah Deniz has been and still is BP’s largest discovery since Prudhoe Bay

The Shah Deniz (SD) field was discovered in 1999. It is one of the world’s largest gas-condensate fields. 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 around 10 billion cubic meters of gas per annum (bcma) and approximately 50,000 barrels a day of condensate. 

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 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.

n 2018, the field produced 11.5 billion standard cubic metres (bcm) of gas and more than 2.5 million tonnes (20.5 million barrels) of condensate.

In 2018, Shah Deniz also celebrated 100 billion cubic metres of total gas production from the field since the start of operations. The milestone was achieved at the end of December, exactly 12 years after the first announcement of the start-up of commercial gas production from the field and start-up of operations of the South Caucasus Pipeline.

The existing Shah Deniz facilities’ production capacity is currently 48.0 million standard cubic metres of gas per day or around 16bcma.