Why does BP think about Shah Deniz-3 project during crisis period?

In quarter 4, 2016 BP-Azerbaijan plans to start interpretation of data of 3D seismic survey performed for implementation of the Phase 3 of the gas condensate field Shah Deniz, Greg Riley, BP-Azerbaijan Vice President for Geological Exploration and Development, told journalists.

“We continue preparation for the Phase 3 implementation and collect data. However, at the moment this is not a priority for us, because we are focused on implementation of Phase 2,” Riley said.

Vice President added that 3D seismic survey for implementation of Phase 3 was done in 2015 using a specialized vessel Gilavar.

A source from SOCAR told Turan that during the Phase 2 it is planned to extract about 220 bcm of gas and 400 bcm during the Phase 2. Implementation of Phase 3 project will start in 2025 to start extraction by the end of the next decade. The resources within the Phase 3 are estimated at 500 bcm.

Khoshbakht Yusifzada, SOCAR Senior Vice President for Geology, said at a conference at the end of last year that the peak of extraction of the Phase 2 project will total 16 bcm in 2022 and the production will stay the same till 2029. By that time the Phase 1 project will be in operation for over 22 years and the production will be going down every year. BP-Azerbaijan needs the Phase 3 project to support stable volume of export from the Phases 1 and 2.

The contract for the Shah Deniz field development was signed in Baku on June 4, 1996. The project partners include BP (operator with 28.8%), Petronas (15.5%), SOCAR (16.7%), LUKoil (10%), NICO (10%), Total (10%) and TPAO (19%). By present over 60 bcm of gas has been extracted from the Phase 1 project.—0—