By Azernews

By Ayya Lmahamad

Shah Deniz 2 has started the production from the fifth well on the North Flank, BP reported on November 22.

"Shah Deniz 2 has achieved one more important milestone by starting up production from the fifth well on the North Flank. The start-up was planned for the fourth quarter of 2021, and it has been achieved safely and on schedule," the company reported.

It was noted that the existing Shah Deniz 1 and 2 facilities' total production capacity is currently about 70 million standard cubic meters of gas per day (or more than 25 bcma).

The company emphasized that in July this year, the daily production rates of the Shah Deniz Bravo platform reached the Shah Deniz Alpha rates for the first time.

During the first three quarters of the year, the field produced around 16 billion standard cubic meters of gas and around 3 million tonnes (around 24 million barrels) of condensate in total from the Shah Deniz Alpha and Shah Deniz Bravo platforms.

Earlier it was reported that during the reported period, the Shah Deniz field continued to provide deliveries of gas to markets in Azerbaijan (to Azerkontrakt), Georgia (to GOGC), Turkey (to BOTAS), and to BTC Company in multiple locations. In addition, more than $1.5 billion were spent in operating expenditure and around $524 million in capital expenditure, the majority of which was associated with the Shah Deniz 2 project.

This year, Shah Deniz celebrates its 25th anniversary since the signing of the Shah Deniz Production Sharing Agreement (PSA).

The contract on the development of the Shah Deniz gas field was signed in 1996. Shareholders of the Shah Deniz project are BP (operator, 28.8 percent), TPAO (19 percent), AzSD (10 percent), SGC Upstream (6.7 percent), PETRONAS (15.5 percent), LUKOIL (10 percent), and NICO (10 percent).