By OGJ editors
HOUSTON, May 8 -- BP PLC, operator of Shah Deniz natural gas and condensate field in the Caspian Sea off Azerbaijan, has completed first-phase field development—installation of the production platform and associated pipelines 100 km south of Baku (see map, OGJ, Oct. 18, 2004, p. 39).
McDermott Caspian Contractors Inc. installed the fixed platform, from which 10 wells will be drilled, and 100 km of 26-in. gas line and 12-in. liquids line to new onshore gas processing and condensate stabilization facilities at Sangachal terminal south of Baku (OGJ, Apr. 24, 2006, Newsletter).
Shah Deniz, which has gas reserves estimated at 25-35 tcf, is expected to produce 8.5 billion cu m/year of gas and 37,000 b/d of condensate (OGJ Aug. 21, 2000, p. 68). First production is scheduled for Sept. 30.
Gas will be piped through the Georgian capital Tbilisi to Erzurum, Turkey, via the 690 km South Caucasus gas pipeline from the terminal, with some gas reserved for Azerbaijan and Georgia. Condensate will be piped to Ceyhan, Turkey.
BP is technical operator of the field and the terminal, and Statoil ASA is commercial operator, responsible for gas sales, contract administration, and business development.
In addition to BP and Statoil, which hold a 25.5% interest each, Shah Deniz consortium shareholders include State Oil Co. of the Azerbaijan Republic, Total SA, Naftiran Intertrade Co. Ltd., and LukAgip NV—each holding 10%—and Turkiye Petrolleri Anonim Ortakligi, 9% (OGJ, Mar. 17, 2003, Newsletter).
The consortium has budgeted $3.2 billion for upstream and midstream development.
