Shah Deniz Stage 2 is an exceptional project as it is developing in line with the approved plan.
This was stated by Ewan Drummond, BP regional vice-president for projects in Azerbaijan, Georgia and Turkey, at the SPE Annual Caspian Technical Conference and Exhibition in Baku on November 3.
He added that the Shah Deniz Stage 2 project has been completed by more than 98 percent, noting that work on the project is ongoing in accordance with the schedule and approved budget, he noted.
“It is a very complex 28-billion project with large-scale drilling program, unprecedented underwater infrastructure, construction of two connected platforms, expansion of the Sangachal terminal and South Caucasus Pipeline with the construction of two compressor stations in Georgia. It involved eight joint ventures, more than a hundred suppliers, three engineering alliances and about 30,000 employees. It is very rare when in such projects, everything goes in line with the approved plan,” Drummond said.
He noted that in most major projects even with good planning, the expenses during implementation may exceed the costs planned by the final investment decision.
Drummond further noted that the Khankendi vessel for underwater construction has already started operations within the project.
Shah Deniz Stage 2 is a giant project that will add a further 16 billion cubic meters per year (bcma) of gas production to the approximately 9 bcma produced by Shah Deniz Stage 1.
Being one of the largest gas developments in the world, the project will help increase European energy security by bringing Caspian gas resources to markets in Europe for the very first time.
The produced gas will be exported to Turkey and the European markets through the expansion of the South Caucasus Pipeline and the construction of the Trans-Anatolian (TANAP) and Trans-Adriatic (TAP) gas pipelines. Shah Deniz gas will travel 3,500 kilometres, to elevations of over 2,500 metres, and over 800 metres below the sea.
A contract for development of the Shah Deniz offshore field was signed on June 4, 1996. The field’s reserves are estimated at 1.2 trillion cubic meters of gas.
SPE Annual Caspian Technical Conference and Exhibition brings together senior executives and technical experts from the Caspian oil and gas industry.
This year’s theme “Chasing the Margins,” focuses on the current market conditions facing the oil and gas industry, both globally and on a local level.
The conference provides a platform for local, regional, and international experts to discuss topics relevant to maintaining and boosting technological advancements and developments in the region.
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