Shah Deniz Gas Field

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Azerbaijan Oil & Gas Fields

Socar Oil & Gas Fields

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Summary Information

  • Operator: BP
  • Country: Azerbaijan
  • Location: 55 km SE of Baku
  • Production start: 2006
  • Partners:
    • Statoil (Norway) – 26%
    • BP (Great Britain) – 25%
    • SOCAR – 10%
    • LUKAcip (Russia-Italy) – 10%
    • NİKO (Iran) – 10%
    • Total (France) - 10%
    • TPAO (Turkey) – 9%
  • Type: Gas
  • Estimated Reserves: 30 trillion cubic feet - 1 trillion cubic metres - of gas in place
  • Production Volume:
    • Phase 1: 8.6 billion cubic meters of gas per annum (bcma)
    • Phase 2: An additional 16 billion cubic meters of gas per annum (bcma)


  • Shah Deniz is located in waters 50m to 500 m deep 55 km SE of Baku. The Agreement covers an area of approximately 859.8 km2. The exploration period is 3 years, and at least 2 exploration wells had to be drilled, while an additional well was drilled during an extension of the exploration period. According to the agreement the development period is 30 years and can be extended for another 5 years.
  • BP Exploration Shahdeniz Ltd. was established to serve as the operator. The primary development targets are the Balakhany VIII, X and "Pereryv" strata at depths of 5000-6500 m.
  • Gas is supplied to Turkey via the South Caucasus Gas Pipeline
  • Stage 2 onshore facility consists of two gas processing trains with 900 mmscf/d capacity each and condensate processing facilities with about 105 mbd capacity
  • Access to European markets is to be via the Trans Anatolia Gas Pipeline


  • Keppel: TPG 500 platform hull and living quarters
  • Technip: design, engineering, procurement, assembly, installation, hook-up and project management assistance for a TPG 500 drilling and production platform
  • J. Ray McDermott: Installation of two 90 kilometer offshore gas transportation pipelines from the Shah Deniz Alpha platform to the Sangachal Oil Terminal, pipeline tie-ins to the platform, diving work and all pre-commissioning activities

Shah Deniz Stage 2

  • KBR: Engineering design and procurement support services for an offshore complex consisting of two bridge-linked fixed jacket platforms as well as an onshore gas processing facility
  • FMC Technologies:
    • Subsea manifolds, associated controls and connection equipment
    • Subsea production systems for Well Clusters 3-5
  • Wood Group Kenny: Engineering and project management services for Subsea Execute phase
  • Global Maritime: Warranty surveyor for installation of flowlines, export lines and subsea facilities


  • 1954 - The Shah Deniz prospect was first identified by Azeri geologists
  • 1996 - The Agreement on the Exploration, Development, and Production Sharing for the Shah Deniz Prospective Area in the Azerbaijan Sector of the Caspian Sea was signed
  • 1999 - Shah Deniz discovered
  • 2000 - Plans released for the potential export of Azerbaijan gas to Turkey
  • 2003 - Technip awarded drilling and production platform contract
  • 2003 - Keppel awarded Jack Up contract
  • 2006 - Production is started
  • 2011 - Shah Deniz issues a request for proposal to potential export pipelines
  • 2011 - Memorandum for construction of Trans Anadolu Gas Pipeline signed
  • 2012 - Decision to commence Front End Engineering and Design (FEED) on the estimated $25 billion Shah Deniz Stage 2 project
  • 2013 - Shah Deniz Begins Evaluating Final Gas Transportation Offers
  • 2013 - FID taken on Phase II
  • 2014 - TPAO acquires a further 10% from Total
  • 2014 - Petronas acquires Statoils stake



  1. Shah Deniz, Socar
  2. McDermott Platform References
  3. Global Maritime Pipeline References
  4. Shah Deniz, BP
  5. J. Ray McDermott to Install Shah Deniz Subsea Pipelines
  6. Shah Deniz issues a request for proposal to potential export pipelines
  7. Memorandum for construction of Trans Anadolu Gas Pipeline signed
  8. Shah Deniz Stage 2 Project Enters the Next Phase of Development
  9. MASNET : Keppel FELS Receives Letter Of Award For Fabrication Job From BP
  10. Contract award for the Shah Deniz field stage 1 development in the Caspian Sea
  11. BP Amoco Major Gas Condensate Find in Azerbaijan
  12. Shah Deniz Signals Early Azeri Gas Export to Turkey
  13. Shah Deniz Begins Evaluating Final Gas Transportation Offers
  14. Statoil makes final investment decision on Shah Deniz stage 2 and announces 10% divestment
  15. KBR Awarded Major Engineering Design Contract by BP for Shah Deniz Stage 2 Project
  16. FMC Technologies Awarded $322 Million Contract for Subsea Systems for BP's Shah Deniz Stage 2 Project
  17. Azerbaijan: Total Sells Its 10% Interest In Shah Deniz To TPAO
  18. Wood Group Kenny awarded major subsea contract for stage 2 of Shah Deniz development
  19. Statoil sells 15.5% share in Shah Deniz to PETRONAS for USD 2.2 billion
  20. FMC Technologies Awarded $297 Million Contract for Subsea Production Systems for Shah Deniz Stage 2 Project

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