Shah Deniz 2 '95% done': BP

BP-operated Shah Deniz 2 project in the Caspian Sea was 95% complete by the end of June according to a mid-year report published August 17, and it is on course to deliver first gas next year. 

In June, the topsides were shipped and installed at sea. The construction of the topsides for the second platform has already been completed, and the testing is 90% complete. Their shipment and installation in the sea is scheduled for the third quarter of 2017.

Also, the tests of the service vessel Khankendi for underwater construction work have been completed, and the expansion works are continuing at the Sangachal gas terminal just outside the capital, Baku. 

In the first half of 2017 BP produced 5.1bn m³, which was down by 5.6% or 300mn m³. Shah Deniz produced 1.2mn mt tons of condensate, down 7.7% or 0.1mn mt," the company said.

According to BP, its total country costs have come down 10% in H1 2017 compared with H1 2016. This year investment totalled $1.889bn, of which operating expenses amounted to $249mn (H1 2016: $225mn), and capital expenditures were $1.64bn (H1 2016: $1.87bn). Moreover, the main volume of capital expenditures fell on work within the framework of Shah Deniz 2 project.

In the first half of 2017 gas transport through the South Caucasus Pipeline averaged 21.4mn m³/d (H1 2016: 20.1mn m³/d). Capital expenditures for gas pipeline maintenance amounted to $413mn ($498mn in H1 2016) and operational costs were $14mn (H1 2016: $13mn).

In 2016, gas production from the Shah Deniz field amounted to 10.7bn m³, and condensate production was 2.5mn mt. Participants in the Shah Deniz project are BP (operator, 28.8%), TPAO (19%), Socar (16.7%), Petronas (15.5%), Lukoil (10%) and Nico (10%). 

Azerbaijan desk