BP increases gas and condensate production at Shah Deniz by 7.7%

BP Azerbaijan produced 28 billion cubic meters of gas at the Shah Deniz field in 2024, which is 7.7% higher than in 2023, Report informs referring to the company's press service statement.

During the reporting period, about 35 million barrels of condensate (more than 4 million tons) were also produced at the field, which corresponds to the 2023 figure.

"The existing Shah Deniz facilities’ production capacity is currently about 79 million standard cubic meters of gas per day or approximately 29 billion standard cubic meters per year," reads the report.

The Shah Deniz consortium's expenses for field development in January-September decreased by 3.8% year-on-year to $2.969 billion, including operating expenses of more than $2.203 billion (up 0.4%) and capital expenditures of $766 million (down 14.1%). The main volume of expenses was allocated to works under Stage 2 of the field development.

During the reporting period, an average of 61.7 million cubic meters of gas was transported daily through the South Caucasus Pipeline (compared to 60.5 million cubic meters per day in January-September 2023). Operating expenses for SCP maintenance in January-September 2024 amounted to $60 million, while capital expenses were $13 million.

BP Azerbaijan produced 26 billion cubic meters of gas from Shah Deniz in 2023, which is 4% higher than in 2022.

The contract for field development was signed in 1996. The current shareholding structure in the contract is as follows: BP plc (technical operator - 29.99%), LUKOIL (19.99%), TPAO (19%), Azerbaijan's Southern Gas Corridor (16.02%), NICO (10%), Hungarian MVM - 5%.