BAKU, Azerbaijan, June 2
By Leman Zeynalova – Trend:
Shah Deniz Phase 3 development is bit far as of now, Rystad Energy’s upstream analyst Swapnil Babele told Trend.
“BP had commissioned the Shah Deniz phase 2 in 2018, the operator is currently conducting drilling activities on the field. It expects to produce up to 25 billion cubic meters of gas in next couple of years as Shah Deniz phase-2 will reach its plateau production levels.
Shah Deniz Phase 3 development is bit far as of now. BP has plans to drill an exploration well on the Shah Deniz Deep prospect. The operator is currently focused on drilling the wells on the Shafag Asiman and Shallow Water Absheron Peninsula blocks. It might take few years for the exploration and subsequent appraisal drilling to validate the additional gas reserves in the Shah Deniz structure,” he said.
Babele noted that the development of the field will further depend on the available infrastructure for export as the country has plans to commission some major gas condensate fields like Absheron, Umid-Babek etc.. in next few years (currently Trans-Anatolian gas pipeline (TANAP) has a capacity of only 16 bcm and Trans Adriatic Pipeline (TAP) 10 bcm, with further expansions planned).
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.
In the first three months of 2021, the Shah Deniz field produced more than 5.1 billion standard cubic metres (bcm) of gas and around 1 million tonnes (7.8 million barrels) of condensate in total from the Shah Deniz Alpha and Shah Deniz Bravo platforms.
The existing Shah Deniz facilities’ production capacity is currently over 58 million standard cubic metres of gas per day or more than 21 bcma.
Shah Deniz participating interests are: bp (operator – 28.8 percent), TPAO (19 percent), PETRONAS (15.5 percent), AzSD (10 percent), LUKOIL (10 percent), NICO (10 percent) and SGC Upstream (6.7 percent).
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