BP-Azerbaijan produced 26 bcm of gas from the “Shah Deniz” field in the Azerbaijani sector of the Caspian Sea in 2023, by 4% higher than in 2022. About 35 million barrels of condensate (over 4 million tons) were also produced from the “Shah Deniz” field in 2023, by 2.8% lower than in 2022, a report by bp-Azerbaijan (the project operator.)
Currently, the field’s production capacity is 74 mcm per day or over 27 bcm per year.
The costs of the “Shah Deniz” consortium in 2023 as part of the development of this field amounted to $3 billion 86 million (an increase of 12.5%), while the operating costs of the project amounted to $2 billion 194 million, capital expenditures – $892 million.
In 2023, transportation along the South Caucasus Pipeline (SCP) averaged 60.1 mcm of gas per day (in 2022 – 57.4 mcm.) The operating costs of SCP maintenance in 2023 exceeded $77.7 million, capital costs exceeded $13.8 million.
The contract for the development of the “Shah Deniz” field was signed in Baku on June 4, 1996 and ratified by the Milli Majlis on October 17 of the same year. The parties’ equity participation in the contract currently looks as follows: bp (operator – 29.99%), LUKOIL (19.99%), TPAO (19%), NICO (10%) and CJSC Cenub Qaz Dehlizi (21.02%). Gas production from the “Shah Deniz” field began in December 2006.
Currently, gas production from the “Shah Deniz” field is conducted from the Alpha platform as part of Stage 1 and from the Bravo platform as part of Stage 2.
