In the first quarter of 2020, Shah Deniz spent about $219 million in operating expenditure and $219 million in capital expenditure, the majority of which was associated with the Shah Deniz 2 project, respectively, up 14.6% and down 18% from the previous year, Report informs, citing BP-Azerbaijan.
During the quarter, the Shah Deniz field continued to provide deliveries of gas to markets in Azerbaijan (to SOCAR), Georgia (to GOGC and SOCAR), Turkey (to BOTAS), and to BTC Company in multiple locations.
In the first three months of 2020, the field produced around 4.7 billion standard cubic meters (bcm) of gas and 1 million tonnes (7.7 million barrels) of condensate in total from the Shah Deniz Alpha and Shah Deniz Bravo platforms, respectively, up 9% and 2.7% from the first quarter of 2019.
Production from Shah Deniz Bravo has been ramping up since the first gas delivery at the end of July 2018.
The existing Shah Deniz facilities’ production capacity is currently over 56 million standard cubic meters of gas per day or more than 20 bcma.
Shah Deniz gas field is the largest natural gas field in Azerbaijan. It is situated in the South Caspian Sea, off the coast of Azerbaijan, approximately 70 kilometers southeast of Baku. The Agreement on “the Exploration, Development, and Production Sharing (PSA)” for the Shah Deniz area was signed between SOCAR and some oil companies of foreign countries on June 4, 1996. Azerbaijani Parliament ratified the document of “the Exploration, Development, and Production Sharing (PSA)” on October 17, 1996. The Shah Deniz gas and condensate field was discovered in 1999.
Shah Deniz participating interests are: BP (operator – 28.8%), TPAO (19.0%), AzSD (10.0%), SGC Upstream (6.7%), PETRONAS (15.5%), LUKOIL (10.0%) and NICO (10.0%).