Details added (first version posted at 13:31)
Baku, Azerbaijan, Nov. 3
By Maksim Tsurkov - Trend:
Shah Deniz Stage 2 is an exceptional project, Ewan Drummond, BP regional vice-president for projects in Azerbaijan, Georgia and Turkey, said at the SPE Annual Caspian Technical Conference and Exhibition in Baku Nov. 3.
He noted that the Shah Deniz Stage 2 project has been completed by more than 98 percent.
“Work on the project is ongoing in accordance with the schedule and approved budget,” he noted. It is a very complex 28-billion project with large-scale drilling program, unprecedented underwater infrastructure, construction of two connected platforms, expansion of the Sangachal terminal and South Caucasus Pipeline with the construction of two compressor stations in Georgia. It involved eight joint ventures, more than a hundred suppliers, three engineering alliances and about 30,000 employees. It is very rare when in such projects, everything goes in line with the approved plan,” Drummond said.
He noted that in most major projects even with good planning, the expenses during implementation may exceed the costs planned by the final investment decision.
Drummond further noted that the Khankendi vessel for underwater construction has already started operations within the project.
Within the implementation of Shah Deniz Stage 2, gas production will increase from 9 to 25 billion cubic meters per year. The produced gas will be exported to Turkey and the European markets through the expansion of the South Caucasus Pipeline and the construction of the Trans-Anatolian (TANAP) and Trans-Adriatic (TAP) gas pipelines.
A contract for development of the Shah Deniz offshore field was signed on June 4, 1996. The field's reserves are estimated at 1.2 trillion cubic meters of gas.