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AZERBAIJAN > UK based BP to starts up landmark Shah Deniz 2 development in Azerbaijan

The largest subsea infrastructure operated by BP worldwide, the Shah Deniz 2 gas development in Azerbaijan is a $28 billion project which was announced by BP and its partners to start, including its first commercial gas delivery to Turkey. BP is also starting for the Southern Gas Corridor series of pipelines that will deliver gas from the Caspian Sea direct to European markets for the first time.

According to BP group chief executive Bob Dudley:

“Shah Deniz 2 is one of the biggest and most complex new energy projects anywhere in the world, comprising major offshore, onshore and pipeline developments. BP and our partners have safely and successfully delivered this multi-dimensional project as designed, on time and on budget.

Together with the Southern Gas Corridor pipeline system, Shah Deniz 2 will deliver significant new energy supplies to Europe, further diversifying its sources of energy and providing new supplies of natural gas which will be essential in the energy transition.

This milestone achievement is a credit to the Shah Deniz partners and to our close co-operation with the governments of Azerbaijan, Georgia and Turkey, building on the relationships BP has built in the region over more than 25 years.”

Second of the six projects expected to start up this year, Shah Deniz 2 is BP’s largest new upstream project in 2018 and is following Atoll in Egypt. This is a key project for BP to deliver 900000 barrels of oil equivalent new production that BP is expecting from its new upstream major projects by 2021.


Total production from the Shah Deniz field is expected to be up to 26 bcma of gas and up to 120,000 barrels of condensate a day whilst Shah Deniz 2 is expected to produce 16 billion cubic meters of gas per year (bcma)

Shah Deniz 2 project includes 26 subsea wells with 500 km of subsea pipelines and flowlines and two new bridge linked platforms and also the new South Caucasus pipeline expansion – 428km of new pipeline in Azerbaijan and 59km in Georgia, including two new compressor stations – carrying Shah Deniz gas to Turkey. Gas is transported onshore through an 85 km pipeline to the Sangachal terminal near Baku.

Bernard Looney, BP’s chief executive, Upstream, said the following about the project:

“Bringing this huge project online within the schedule and budget we set out at sanction 4½ years ago is further evidence of our focus on efficient and disciplined project execution. As our largest start-up for the year, Shah Deniz 2 is also a very important milestone in delivering our plans for growth, including from our pipeline of new higher-margin projects.”

As can be seen from our recent agreements, we expect to be operating in Azerbaijan for decades to come and we continue to see opportunities to work with the country to further explore and develop its significant resources.”

Shah Deniz 1, began production in 2006 and currently supplies gas to Azerbaijan, Georgia and Turkey and Shah Deniz is the largest gas discovery by BP in1999. Shad Deniz 2 was sanctioned in 2013 which supports more than 30000 jobs in Azerbaijan and Georgia and in total includes over 180 million hours of work.

About BP

BP is a British oil and gas company headquartered in London, England. Its foundation dates back to May 1908 (as Anglo-Persian Oil Company), 14 April 1909  (as The British Petroleum Company P.L.C), 31 December 1998 (as BP Amoco P.L.C.) and latest 1 May 2001 (as BP P.L.C.).

It operates in all areas of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading. It also has renewable energy interests in bio-fuels and wind power.

As of 31 December 2015, BP had operations in more than 70 countries, produced around 3.3 million barrels per day of oil equivalent, and had total proved reserves of 17.18 billion barrels of oil equivalent. The company has around 17,200 service stations worldwide.




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