Shah Deniz gas field

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Shah Deniz
Shah Deniz gas field is located in Caspian_Sea
Shah Deniz gas field
Location of Shah Deniz
Country Azerbaijan,
Offshore/onshore Offshore
Coordinates 39°58′N 50°13′E / 39.967°N 50.217°E / 39.967; 50.217Coordinates: 39°58′N 50°13′E / 39.967°N 50.217°E / 39.967; 50.217
Operators BP (25.5%), Statoil (25.5%), SOCAR (10%), Total S.A. (10%), LukAgip (10%), Oil Industries Engineering & Construction (OIEC) (10%), Turkish Petroleum Overseas Company Limited (9%).
Field history
Discovery 1999
Start of production 2006
Abandonment NA
Current production of gas 7×10^9 m3/a (250×10^9 cu ft/a)
Estimated oil in place 3,000 million barrels (~4.1×10^8 t)
Estimated gas in place 1,200×10^9 m3 (42×10^12 cu ft)[1]

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 kilometres (43 mi) southeast of Baku, at a depth of 600 metres (2,000 ft). The field covers approximately 860 square kilometres (330 sq mi). The Shah Deniz gas and condensate field was discovered in 1999. It is to bring gas into Europe without having to traverse countries like Russia or Iran, deemed to be politically unreliable[2] by some.


The Shah Deniz field is operated by BP which has a share of 25.5%. Other partners include Statoil (25.5%), SOCAR (10%), Total S.A. (10%), and LUKoil (10%), NIOC (10%), and TPAO (9%). Eni sold its 5% share to LUKOIL in June 2004.


The Shah Deniz reserves are estimated at between 1.5 billion barrels (240,000,000 m3) to 3 billion barrels (480,000,000 m3) of oil equivalent from 50 to 100 billion cubic meters of gas. Gas production to date at the end of 2005 was estimated to be approximately 7 billion cubic meters (600 mmcf/day avg). The Shah Deniz field also contains gas condensate in excess of 400 million cubic meters.


The 692 kilometres (430 mi) South Caucasus Pipeline, which began operation at the end of 2006, transports gas from the Shah Deniz field in the Azerbaijan sector of the Caspian Sea to Turkey, through Georgia.

The associated condensate is mixed with the oil from the ACG field and is transported to Turkey through Georgia, along the Baku–Tbilisi–Ceyhan pipeline.

Recent developments[edit]

The Shah Deniz scheme started to produce gas at the end of December 2006, three months later than expected, but was forced to close briefly in January 2007. Azerbaijan then announced that the field had resumed output only to admit that it had been forced to shut down for a few weeks due to start up technical issues.The shutdown forced Georgia to buy emergency gas supplies from Russia at a market price. Georgia hoped that production from Shah Deniz will allow the country to decrease its energy — and political — dependence on Russia.[2]

By July 2007, the Shah Deniz gas plant at Sangachal Terminal was fully operational, with all buyers of Shah Deniz gas taking gas.[3]

Shah Deniz stage 2 has now been approved. This project will include two additional bridge-linked offshore gas platforms, sub sea wells and expansion to the gas plant at Sangachal Terminal, at an estimated cost of at least $10 billion.[4]

See also[edit]


  1. ^ "Upstream Online.Socar tallies up giant Umid field". Retrieved 2010-12-06. 
  2. ^ a b MacAlister, Terry (2007-02-05). "More trouble for BP as gas scheme is halted". London: Guardian. Retrieved 2008-07-12. 
  3. ^ Clare Watson (2007-07-05). "Gas from Shah Deniz field now flowing to Turkey, Statoil reveals". Energy Business Review. Retrieved 2008-07-12. 
  4. ^ Aida Sultanova; Andrew Langley (2007-10-01). "Investment in Shah Deniz Stage 2 Seen at $10 Billion". Rigzone. Retrieved 2008-07-12. 

External links[edit]