Baku: This year marks the 30th anniversary of the signing of the Production Sharing Agreement (PSA) for the Shah Deniz field, one of Azerbaijan's largest energy projects, APA-Economics reports.

According to Azeri-Press News Agency, the PSA for the Shah Deniz field was signed in Baku on June 4, 1996, between bp, SOCAR, and other foreign partners. Ratified by the Milli Majlis, the agreement came into force on October 17 of the same year. Shah Deniz is one of the world's biggest gas-condensate fields and the largest ever discovered by bp. Situated on the deepwater shelf of the Caspian Sea, 70 kilometers southeast of Baku, it holds reserves of approximately 1 trillion cubic meters of gas and 2 billion barrels of condensate.

The field commenced gas production in 2006, marking the 20th anniversary of this milestone as well. In December 2013, decisions for the Shah Deniz 2 project were finalized, and production for its second stage started in 2018. With the full commissioning of the Southern Gas Corridor in December 2020, gas from Shah Deniz began to reach European markets.

In 2025, the field produced a total of 27 billion standard cubic meters of gas and 4 million tons of condensate from the Shah Deniz Alpha and Shah Deniz Bravo platforms. By the end of the first quarter of 2026, cumulative production from the field stood at 271 billion cubic meters of gas and nearly 53 million tons of condensate. During this period, approximately 271 billion cubic meters of gas were exported via the South Caucasus Pipeline and its expanded system.

A total of 34 wells have been drilled at Shah Deniz, with 32 currently operational. Some of bp's highest-producing wells are located here, with 17 of the company's top 20 wells worldwide situated in this field. By the close of the first quarter of 2026, capital investment in the Shah Deniz project reached $31 billion.

The development of the Shah Deniz field has bolstered Azerbaijan's influence in energy markets regionally and internationally, drawing one of the largest volumes of foreign direct investment in the nation's history. The project has facilitated the establishment of new offshore platforms, onshore terminals, and export infrastructure, positioning Azerbaijan as a key partner in Europe's energy security.