In the first half of 2022, gas production at the Shah Deniz Caspian field amounted to 13 billion cubic meters which is 30% higher than in January-June 2021, BP (production operator) reports.

Over 18 million barrels of condensate (2 million tons) were also produced from the Shah Deniz field, which is up by 19.2% from the first half of 2021.

“At present, the field’s production capacity is approximately 70 million cubic meters per day or more than 25 billion cubic meters per year,” the report says.

Earlier, the company reported that in the second half of this year, the production at Shah Deniz will reach 72 million cubic meters per day, that is, at a stable peak, which can last about 5 years.

The costs of the Shah Deniz consortium in the first half of 2022 as a part of the development of this field amounted to $1 billion 446 million (decline of 4%). At the same time, the operating costs of the project exceeded $1 billion 260 million, capital expenditures amounted to $186 million. The bulk of the costs fell on work within the framework of Stage-2 of the development of the Shah Deniz field.

In January-June 2022 along the South Caucasus pipeline (passes through the territory of Azerbaijan and Georgia) gas transportation averaged 56.9 million cubic meters per day (in January-June 2021 – 46.51 million cubic meters per day). Operating costs for the maintenance of the YUKTM amounted to $29 million, capital costs – $ 2 million.

Recall that in 2021, gas production from the Shah Deniz field in the Azerbaijani sector of the Caspian Sea amounted to 23 billion cubic meters of gas, which is up by 27.1% from 2020.

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 is currently as follows: BP (operator, 29.99%), SOCAR and its subsidiaries (21.02%), LUKOIL (19.99%), NICO (10%), TPAO (19%).

Gas production from the Shah Deniz field has been carried out since December 2006 (from the Alpha platform as a part of Stage-1 and from the Bravo platform as a part of Stage-2).

Shah Deniz reserves are estimated at 1.2-1.5 trillion cubic meters of gas.

Source: Turan News Agency