BP expects FID on construction of Shah Deniz Compression platform in June
BAKU. March 6 (Interfax) - British oil and gas major BP plc expects to make the final investment decision (FID) on the project to build the Shah Deniz Compression (SDC) platform at the Shah Deniz field in June 2025, BP Azerbaijan spokesperson Tamam Bayatly told reporters on Wednesday.
"Our attention is now focused on a new project, the construction of the SDC compression platform. We presented the report on the environmental and social impact assessment to the public and sent it to the government. We expect its approval, which will become the transition to project implementation. However, the final investment decision must be made before the start of implementation. We planned it for the summer, the end of the second quarter at the latest. As far as I know, it's planned for June," Bayatly said.
Then contractors and construction sites will be selected for the project and its cost will be determined, she said.
Bayalty said earlier that the FID on the project was expected closer to the end of this year.
The project involves building an electric SDC platform that will operate largely unmanned, laying power and fiber optic cables, as well as underwater infield gas pipelines from the Alpha and Bravo platforms. The SDC will be outfitted with four 11 MW compressors to compress gas.
The SDC is intended to recover low pressure gas from some Shah Deniz reservoirs, compress it and deliver it to the Sangachal terminal; it is intended only for compression equipment, not for drilling operations. The gas will come from the Shah Deniz Alpha (SDA) and Shah Deniz Bravo (SDB) platforms.
The SDC will be installed 3 km from SDB and 10 km from SDA. The company plans to build the jacket and topsides of the new platform, as well as components of underwater infrastructure in Azerbaijan. Most of the construction of facilities onshore and their deployment is scheduled for 2026-2028.
Production of the first low pressure gas is scheduled to begin in June-July 2029 on the SDA platform and in April-May 2030 on the SDB platform.
The contract to develop the field was signed in 1996. BP, the operator, holds a 29.99% stake, Russia's Lukoil holds 19.99%, Turkey's TPAO owns 19%, Azerbaijan's Cenub Qaz Dehlizi owns 16.02%, Iran's NICO holds 10% and Hungary's MVM holds 5%.
Gas and condensate at the field is currently produced at the Alpha platform under Stage 1 and the Bravo platform under Stage 2.
