Caspian Shah Deniz 2 at 60% of Capacity: BP
The output from the second stage of Azerbaijan's Shah Deniz gas field (SD2) has reached 26mn m³/d, about 60% of its full capacity, the operator BP told NGW February 6. Overall output from the two horizons is 56mn m3/d (20.44bn m3/yr).
Currently 11 wells are connected to SD1’s Alfa platform with 30mn m3/d capacity; and 17 of the projected 26 wells at SD2 are ready along with links to Bravo platform. Full production capacity of 44mn m3/d is expected in two years.
Last year the consortium spent about $1.644bn on the two phases, of which $1.1bn was capital expenditure. Capex declined 23.6% year-on-year and Opex dropped by 5.9%.
Production and costs at SD (mn b; $mn)
|
Year |
Production |
Opex |
Capex |
Overall costs |
|
|
Natural gas (bn m3) |
Condensate (mn barrel) |
||||
|
2013 |
9.8 |
19.6 |
200 |
1700 |
1900 |
|
2014 |
9.9 |
18.7 |
400 |
3900 |
4300 |
|
2015 |
9.9 |
18.3 |
482 |
4370 |
4852 |
|
2016 |
10.7 |
19.9 |
469 |
3700 |
4169 |
|
2017 |
10.2 |
19.0 |
451 |
2880 |
3331 |
|
2018 |
11.5 |
20.5 |
578 |
1440 |
2018 |
|
2019 |
16.8 |
28.6 |
544 |
1100 |
1644 |
|
Total |
78.5 |
144.6 |
3 124 |
19 090 |
22 214 |
Source: BP’
SD2 started production in mid-2018. As of the beginning output from Shah Deniz gas field in 2006 until end-2019, it has produced 116.8bn m3 gas and 224.8mn barrels of condensate.
Azerbaijan started SD2 gas deliveries to Turkey in 2018 and deliveries to Europe is expected to start this year in a restricted amount. SD2, with 400bn m3 reserves has a 25-year contract with Turkish and European (Greece, Albania, Italy) companies to deliver 16bn m3/yr. The connection with Italy is expected to complete this year, when the TransAdriatic Pipeline is commissioned.