Shah Deniz 2 starts production from the East South flank
6 July 2021
· Another major Shah Deniz 2 milestone achieved safely and on schedule;
· A total of 400 million standard cubic feet of gas per day to be added to the current production - enough to supply two million homes when fully ramped up;
· This will enable Shah Deniz 2 to increase overall production to well over 2.4 billion standard cubic feet per day across the assets.
The Shah Deniz consortium today announced commencement of production from the East South flank at 540m water depth – a major milestone planned for 2021 and achieved safely and on schedule. Production from this deep-water flank started up on 30 June 2021 following the successful completion of all related offshore construction and commissioning works.
The new East South production flank consists of four wells, two new flowlines and a number of subsea structures connected to the world class Shah Deniz reservoir. It is expected that the flank will be at full production rates in the third quarter of 2021.
Gary Jones, Regional President for Azerbaijan, Georgia and Turkey for bp, the operator of Shah Deniz, said: “This is the biggest milestone we had planned to achieve in Shah Deniz this year and we are very proud to have achieved it safely, on schedule and within the budget despite the challenges and restrictions caused by the covid-19 pandemic.
“Following the completion of the main Shah Deniz 2 infrastructure projects and achievement of first gas in 2018, the entire Shah Deniz team have been working hard to deliver new wells on the remaining flanks and start up new infrastructure in the Shah Deniz subsea system ramping up production from the giant field.
“I am pleased to say that we expect the newly-started East South flank to add about 90,000 barrels of oil equivalent per day to the Shah Deniz field production using two manifolds and over 40km of flowlines to the Shah Deniz 2 facilities. I would like to thank all projects and operations teams whose hard work has enabled the delivery of this very important project in a very challenging time and under extremely hard pandemic conditions.”
Notes to Editors
· Shah Deniz participating interests are: bp (operator – 28.8%), TPAO (19.0%), PETRONAS (15.5%), AzSD (10.0%), LUKOIL (10.0%), NICO (10.0%) and SGC Upstream (6.7%).
· Shah Deniz – located in the Caspian Sea offshore Azerbaijan and discovered in 1999 – is the largest gas discovery ever made by bp.
· The giant field covers approximately 860 square kilometres and had approximately 1 trillion cubic metres of gas and 2 billion barrels of condensate initially in place.
· To date the field has produced more than 140 billion cubic metres of gas and more than 33 million tonnes of condensate.
· The field currently produces ~58 million cubic metres of gas and ~85000 barrels of condensate per day
· The first phase of the Shah Deniz field began production in 2006 delivering more than 10 billion cubic metres per annum (bcma) of gas to Azerbaijan, Georgia and Turkey.
· The second phase of Shah Deniz development began production in 2018 and at plateau will add 16 bcma of gas production capacity to bring total production capacity from the field to 26 bcma of gas.
· Shah Deniz 2 gas started to flow to Turkey in June 2018 and has now reached the plateau 6 billion cubic metres per annum.
· With the full completion of the Southern Gas Corridor (SGC) pipeline system in 2020 gas from Shah Deniz has been flowing to Europe.
· The pipelines that make up the new SGC system consist of the South Caucasus Pipeline expansion (SCPx) through Azerbaijan and Georgia - 428 km of new 48-inch pipeline through Azerbaijan; 59 km of new 48-inch pipeline and 2 new compressor stations in Georgia; TANAP - 1,300km of 56-inch pipeline and 600km of 48-inch pipeline across Turkey; and TAP – 878 km of 48-inch pipeline across Greece, Albania and Italy.
USAID and bp Join Forces to Advance Development in Georgia’s Communities
27 July 2021
USAID/Georgia Mission Director Peter Wiebler and bp Georgia head of country Aytan Hajieva signed a Memorandum of Understanding (MOU) affirming USAID/Georgia and bp Georgia’s commitment to strengthening community resilience across Georgia. Under the MOU, USAID will partner with bp to advance economic growth in rural communities. USAID/Georgia and bp Georgia also committed to exploring opportunities to jointly address climate change and promote regional cooperation.
USAID’s Growing Emphasis on Private Sector Engagement
The MOU reflects USAID’s strategy to expand and deepen engagement with the private sector to advance sustainable development in Georgia. The Agency’s growing list of private sector partnerships are focused on helping Georgia strengthen resilience against malign influence, build citizen-responsive institutions, and achieve inclusive economic growth. USAID looks forward to partnering with bp to strengthen resilience in rural communities and taking action to mitigate climate change.
“This partnership with bp Georgia strengthens USAID’s ability to support resilience in Georgia’s rural communities, which is one of the top priorities of the development strategy we launched in 2020,” said USAID/Georgia Mission Director Peter Wiebler. “bp and USAID have collaborated for years to support resilience and inclusive economic growth in Georgian communities, including vulnerable communities near Georgia’s Administrative Boundary Lines. We look forward to creating and co-financing new initiatives that benefit more people across Georgia.”
Aytan Hajieva, bp Georgia head of country, commented that “improving people’s lives is one of the core values of bp’s sustainability strategy. It advances our purpose of reimagining energy for people and for the planet. We intend to combine our efforts with USAID, sharing experience and resources to advance sustainable development in the communities where we work. This collaboration will help Georgia’s communities to build greater resilience, and it will lead to more sustainable livelihoods for Georgian workers and families.”
Building on an Existing Partnership
The MOU builds on an existing successful partnership between USAID/Georgia and bp Georgia. Between 2018 and 2020, USAID, through the USAID Zrda Activity in Georgia, partnered with bp Georgia to implement joint development projects in 41 villages adjacent to the Baku-Tbilisi-Ceyhan (BTC) and South Caucasus Pipeline (SCP) pipelines in Shida Kartli, Samtskhe-Javakheti, and Kvemo Kartli. USAID/Georgia and bp Georgia co-financed $685,000 in initiatives to provide local residents with grants, training, and technical assistance to support the growth of micro-, small-, and medium-sized enterprises.
About USAID in Georgia: As the leading development agency of the U.S. Government, USAID supports Georgia to build the capacity to plan, finance, and implement its own solutions to development challenges. USAID has worked in Georgia since 1992, supporting the country’s transformation into a democracy that is increasingly integrated into Western political, security, and economic institutions. More than 35 USAID programs strengthen Georgia's resilience to malign influence, consolidate democratic gains through enhanced citizen responsive governance, and enable high-value employment through increased economic growth. For more information, please visit: https://www.usaid.gov/georgia.
About bp Georgia: bp on behalf of its partners has been working on major oil and gas projects for 25 years in Georgia. Baku-Supsa and Baku-Tbilisi-Ceyhan oil pipelines as well as South Caucasus gas pipeline and expansion project in Georgia contribute to the energy security of the country. We are one of the biggest investors in the country and we have invested more than USD 4bn in energy infrastructure including USD 100 million spent and committed in the sustainable development projects. Together with our oil and gas partners, donors and business partners we support local communities and wider society with access to energy and energy efficiency, business start-up and agriculture, education and Paralympic sports. bp and its oil and gas partners initiated Community Development Initiative in 2003 and over the 18 years have invested USD 27 million in the local community development. www.bpgeorgia.ge
The transition of SCPC technical operatorship from bp to SOCAR finalizes
2 August 2021
The South Caucasus Pipeline Company (SCPC) announces today that on 01 August 2021 the process of transition of the technical operatorship of the South Caucasus Pipeline Company (SCPC) from BP Exploration (Shah Deniz) Limited to SOCAR Midstream Operations LLC was finalized. SCP is one of the four segments of the Southern Gas Corridor, designated to export natural gas from Azerbaijan via Georgia to Turkey and Europe. SOCAR Midstream Operations LLC is a fully owned subsidiary of SOCAR.
The transfer of technical operatorship was carried out in fulfilment of the obligations undertook in the revised SCPC Pipeline Owners’ Agreement, signed in December 2013 as part of the Final Investment Decision on the Shah Deniz Stage 2 and South Caucasus Pipeline Expansion (SCPX) projects. The agreement entitles SOCAR to undertake the technical operatorship of SCPC on the first anniversary of the SCPX construction completion date. The SCPX construction was completed in March 2019. A year after, in March 2020 SOCAR Midstream Operations LLC officially became the Technical Operator of SCPC with agreed transition period.
The transition process which started in March 2020 has been successfully completed in July 2021. Despite the challenges caused by the COVID-19 bp and SOCAR have worked in close collaboration to effectively implement all the aspects of the transition process.
Rovnag Abdullayev, President of SOCAR, said: “After six years of successful commercial operatorship of the South Caucasus Pipeline Company SOCAR now takes over the technical operatorship of SCPC. This is yet another tremendous achievement for the Azerbaijani state company to operate the international gas pipeline. SCP is one of the key sections of the Southern Gas Corridor aimed at boosting Azerbaijan’s gas exports, supporting energy security, supply diversification and decarbonization goals in Turkey and Europe. We would like to thank bp once again for their excellent partnership and operatorship in all the segments of the Southern Gas Corridor.”
Gary Jones, bp’s regional president for Azerbaijan, Georgia and Turkey, said: “We are pleased that following a thorough and comprehensive transition process, the technical operatorship of SCP has been successfully transferred to SOCAR. SCP is a critical part of the Southern Gas Corridor which for the first time delivers Caspian energy resources to European markets and therefore it is important that we continue to work together to ensure its safety, efficiency, and long-term reliability. SOCAR brings a wealth of experience as commercial operator of SCPC, and we believe they will continue with the same high level of efficiency and expertise now as technical operator. As the biggest shareholder in Shah Deniz and SCPC, we remain committed to working closely with SOCAR in support of their new responsibility and we wish them a tremendous success”
Fuad M. Ahmadov, Executive Director of SOCAR Midstream Operations Limited, said:” We are proud to undertake the role of technical operatorship of the SCP system. At the same time, we fully understand what an enormous responsibility this imposes on us. As the successor Technical Operator, we will continue working closely with bp and all the partners to sustain the high level of safety, efficiency, environmental and social performance SCPC has reached under bp’s operatorship. We are sure that working together we will bring significant benefits to the host countries, shareholders, employees and neighbouring communities”.
Eldar Gaziyev, area operation manager, Azerbaijan, Georgia and Turkey export pipelines: “SCP has been operating safely and reliably since the start of export operations in 2006 and almost all of the credit for this remarkable performance should go to the pipeline operating staff and workforce. At this important time of technical operatorship transfer I would like to recognize their outstanding commitment, dedication and excellent performance which have to date ensured the safety and reliability of the entire export system. We are confident that the similar level of commitment to safe operations and the high quality of capabilities of the staff will continue under SOCAR’s technical operatorship. The way our two teams worked together to achieve a successful transition is an example of excellent partnership and close collaboration. We are particularly proud that the transition has been completed safely and smoothy with no impact on the pipeline operations – huge thanks to both SOCAR and bp teams for making this happen.”
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