BP expects first low-pressure gas from Azerbaijan's Shah Deniz in mid-2029

BAKU. Jan 28 (Interfax) - British company BP Plc is forecasting initial production of low-pressure gas from the Shah Deniz field in mid-2029, according to the materials of BP-Azerbaijan.

The planned installation of a compression platform (a platform with a gas compression system) at Shah Deniz should extend the lifespan of the wells and the field itself, it said.

As reported, the new facility is designed to capture low-pressure gas from the Shah Deniz Alpha (SDA) and Shah Deniz Bravo (SDB) platforms and transport it to the Sangachal terminal after compression.

The project includes construction of the unmanned Shah Deniz Compression (SDC) facility, which will operate on electricity, as well as the laying of electrical and fiber optic cables and the installation of in-field subsea gas pipelines connecting the Alpha and Bravo platforms. The final investment decision (FID) on the project is expected to be made in 2025.

"The first low-pressure gas production from the Shah Deniz Alpha platform is scheduled for June-July 2029, and from the Shah Deniz Bravo platform in April-May 2030," BP-Azerbaijan said.

According to BP materials, the SDC platform will be located 3 km from SDB and 10 km from SDA. It is planned that construction of the support block, topsides and subsea infrastructure components will take place in Azerbaijan. The contractor selection tender process is expected to be completed by the end of Q2 2025. Most onshore construction and commissioning will take place between 2026 and 2028.

"As gas fields are developed, reservoir pressure declines, leading to a reduction in gas flow rates. Since production began at Shah Deniz, a natural decline in reservoir pressure has also started. Gas compression is a widely used and proven method in the oil and gas industry to enhance reservoir performance. To access, produce and maximize the recovery of low-pressure gas reserves within the Shah Deniz contract area, BP plans to implement the compression platform project," the company said.

The contract to develop the Shah Deniz field was signed in Baku in 1996. Equity participation in the contract is currently as follows: BP plc, operator, with 29.99%; Russia's Lukoil with 19.99%; Turkey's TPAO with 19%; Azerbaijan's Cenub Qaz Dehlizi with 16.02%; Iran's NICO with 10%; and Hungary's MVM Group with 5%.

Gas and condensate are currently produced at the Shah Deniz field at the Alpha platform in Stage 1 and at the Bravo platform in Stage 2. Gas production from the Shah Deniz field began in December 2006.