Shah Deniz gas field
Encyclopedia
Shah Deniz gas field is the largest natural gas
field in Azerbaijan
. It is situated in the South Caspian Sea
, off the coast of Azerbaijan, approximately 70 kilometres (43.5 mi) southeast of Baku
, at a depth of 600 metres (1,968.5 ft). The field covers approximately 860 square kilometres (332 sq mi). The Shah Deniz gas and condensate field was discovered in 1999. It is to bring gas into Europe without having to traverse countries like Russia
or Iran
, deemed to be politically unreliable by some in order to promote their projected Nabucco pipeline
.
which has a share of 25.5%. Other partners include Statoil
(25.5%), SOCAR (10%), Total S.A.
(10%), LukAgip, a joint company of Eni
and LUKoil
(10%), NIOC
(10%), and TPAO
(9%).
, which began operation at the end of 2006, transports gas from the Shah Deniz field in the Azerbaijan sector of the Caspian Sea
to Turkey
, through Georgia
.
The associated condensate is mixed with the oil from the ACG field and is transported to Turkey
through Georgia
, along the Baku–Tbilisi–Ceyhan pipeline.
By July 2007, the Shah Deniz gas plant at Sangachal Terminal
was fully operational, with all buyers of Shah Deniz gas taking gas.
Shah Deniz stage 2 has now been approved. This project will include an additional offshore gas platform, sub sea wells and expansion to the gas plant at Sangachal Terminal, at an estimated cost of at least $10 billion.
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
field in Azerbaijan
Azerbaijan
Azerbaijan , officially the Republic of Azerbaijan is the largest country in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west, and Iran to...
. It is situated in the South Caspian Sea
Caspian Sea
The Caspian Sea is the largest enclosed body of water on Earth by area, variously classed as the world's largest lake or a full-fledged sea. The sea has a surface area of and a volume of...
, off the coast of Azerbaijan, approximately 70 kilometres (43.5 mi) southeast of Baku
Baku
Baku , sometimes spelled as Baki or Bakou, is the capital and largest city of Azerbaijan, as well as the largest city on the Caspian Sea and of the Caucasus region. It is located on the southern shore of the Absheron Peninsula, which projects into the Caspian Sea. The city consists of two principal...
, at a depth of 600 metres (1,968.5 ft). The field covers approximately 860 square kilometres (332 sq mi). The Shah Deniz gas and condensate field was discovered in 1999. It is to bring gas into Europe without having to traverse countries like Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
or Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
, deemed to be politically unreliable by some in order to promote their projected Nabucco pipeline
Nabucco Pipeline
The Nabucco pipeline is a proposed natural gas pipeline from Erzurum in Turkey to Baumgarten an der March in Austria diversifying natural gas suppliers and delivery routes for Europe. The pipeline attempts to lessen European dependence on Russian energy...
.
Ownership
The Shah Deniz field is operated by BPBP
BP p.l.c. is a global oil and gas company headquartered in London, United Kingdom. It is the third-largest energy company and fourth-largest company in the world measured by revenues and one of the six oil and gas "supermajors"...
which has a share of 25.5%. Other partners include Statoil
Statoil
Statoil ASA is a Norwegian petroleum company established in 1972. It merged with Norsk Hydro in 2007 and was known as StatoilHydro until 2009, when the name was changed back to Statoil ASA. The brand Statoil was retained as a chain of fuel stations owned by StatoilHydro...
(25.5%), SOCAR (10%), Total S.A.
Total S.A.
Total S.A. is a French multinational oil company and one of the six "Supermajor" oil companies in the world.Its businesses cover the entire oil and gas chain, from crude oil and natural gas exploration and production to power generation, transportation, refining, petroleum product marketing, and...
(10%), LukAgip, a joint company of Eni
Eni
Eni S.p.A. is an Italian multinational oil and gas company, present in 70 countries, and currently Italy's largest industrial company with a market capitalization of 87.7 billion euros , as of July 24, 2008...
and LUKoil
LUKoil
Lukoil/LUKoil ; ) is Russia's second largest oil company and its second largest producer of oil. In 2009, the company produced 97.615 million tons of oil; ....
(10%), NIOC
National Iranian Oil Company
The National Iranian Oil Company , a government-owned corporation under the direction of the Ministry of Petroleum of Iran, is an oil and natural gas producer and distributor headquartered in Tehran. It was established in 1948...
(10%), and TPAO
Türkiye Petrolleri Anonim Ortakligi
Türkiye Petrolleri Anonim Ortaklığı is the national oil and gas company of Turkey and one of the most important industrial companies in the country. The company had reserves of of oil equivalent in 2005, and the reserves are projected to increase to of oil equivalent in 2010...
(9%).
Reserves
The Shah Deniz reserves are estimates to be between 1.5 Goilbbl to 3 Goilbbl of oil equivalent from 50 to 100 billion cubic meters of gas. Gas production to date at the end of 2005 was estimated to be approximately 7 billion cubic meters (600 mmcf/day avg). The Shah Deniz field also contains gas condensate in excess of 400 million cubic meters.Pipeline
The 692 kilometres (430 mi) South Caucasus PipelineSouth Caucasus Pipeline
South Caucasus Pipeline is a natural gas pipeline to transport natural gas from the Shah Deniz gas field in the Azerbaijan sector of the Caspian Sea to Turkey...
, which began operation at the end of 2006, transports gas from the Shah Deniz field in the Azerbaijan sector of the Caspian Sea
Caspian Sea
The Caspian Sea is the largest enclosed body of water on Earth by area, variously classed as the world's largest lake or a full-fledged sea. The sea has a surface area of and a volume of...
to Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
, through Georgia
Georgia (country)
Georgia is a sovereign state in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded to the west by the Black Sea, to the north by Russia, to the southwest by Turkey, to the south by Armenia, and to the southeast by Azerbaijan. The capital of...
.
The associated condensate is mixed with the oil from the ACG field and is transported to Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
through Georgia
Georgia (country)
Georgia is a sovereign state in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded to the west by the Black Sea, to the north by Russia, to the southwest by Turkey, to the south by Armenia, and to the southeast by Azerbaijan. The capital of...
, along the Baku–Tbilisi–Ceyhan pipeline.
Recent developments
The Shah Deniz scheme started to produce gas at the end of December 2006, three months later than expected, but was forced to close briefly in January 2007. Azerbaijan then announced that the field had resumed output only to admit that it had been forced to shut down for a few weeks due to start up technical issues.The shutdown forced Georgia to buy emergency gas supplies from Russia at a market price. Georgia hoped that production from Shah Deniz will allow the country to decrease its energy — and political — dependence on Russia.By July 2007, the Shah Deniz gas plant at Sangachal Terminal
Sangachal Terminal
The Sangachal Terminal is an industrial complex consisting of a natural gas processing plant and oil production plant, located on the coast of the Caspian Sea south of Baku, Azerbaijan.-History:...
was fully operational, with all buyers of Shah Deniz gas taking gas.
Shah Deniz stage 2 has now been approved. This project will include an additional offshore gas platform, sub sea wells and expansion to the gas plant at Sangachal Terminal, at an estimated cost of at least $10 billion.
See also
- Azeri-Chirag-GuneshliAzeri-Chirag-GuneshliAzeri–Chirag–Guneshli is a large complex of oil fields in the Caspian Sea, about off the coast of Azerbaijan. An overall estimated area of the field is . It is operated by a BP-led consortium. The ACG fields have estimated recoverable reserves of about of petroleum...
- Umid gas fieldUmid gas fieldUmid gas field is the second largest natural gas field in Azerbaijan. It is situated in the South Caspian Sea, off the coast of Azerbaijan, approximately southeast of Baku, at a depth of . In translation from Azerbaijani, Umid means Hope.-History:...
- Shafag-AsimanShafag-AsimanShafag-Asiman is a large complex of offshore geological structures in the Caspian Sea located southeast of Baku, Azerbaijan. The Shafag and Asiman structures have been previously called D8 and D10, respectively.-History:...
- Nakhichevan fieldNakhichevan fieldNakhichevan field is an offshore oil and gas field the Caspian Sea, Azerbaijan. It is located south of Baku, at a depth of .Nakhichevan deposit was discovered in 1960. It was prepared for drilling in 1994...
External links
- Shah Deniz, Rigzone website
- Shah Deniz, Offshore Technology website
- Shah Deniz and the South Caucasus gas pipeline, Statoil website