Phase: Front End
Country: Azerbaijan
Categories: Offshore Field Development (Drilling-Subsea)
Updated: 20 Jan 2013

Shah Deniz II Images

Project Description

Shah Deniz II is the second stage of the Shah Deniz Full Field Development as well as the expansion of the South Caucasus Pipeline. It will deliver an additional 16 bcma of gas and up to 100,000 barrels of condensate, tripling overall production from the field.

The Shah Deniz II Project development includes new offshore platforms constructed in Azerbaijan, up to 30 subsea wells, over 500 km of subsea pipelines, laid by a fleet of local vessels, a major expansion of Sangachal Terminal and the expansion of the 700 km South Caucasus Pipeline to Georgia and Turkey to over 20 bcma per year.

The new Shah Deniz gas volumes will be exported to Europe as well as to the existing markets in Georgia and Turkey.

Project Location


Shah Deniz II News

Wood Group Kenny Awarded Major Subsea Contract For Stage 2 Of Shah Deniz

SOURCE: John Wood Group | 03 June 2014

Wood Group Kenny (WGK) has been awarded a £36 million call-off contract, for 2014, with BP Azerbaijan under their 2007 Global Agreement. The contract will cover engineering and project management services for the Shah Deniz 2 Subsea Execute phase.

Statoil’s Farm Down In Shah Deniz And South Caucasus Pipeline Completed

SOURCE: Statoil | 06 May 2014

On 1 May 2014 Statoil completed the farm down of 10% of its interest of 25.5% in the Shah Deniz Production Sharing Agreement and the South Caucasus Pipeline Company Limited to BP (3.33%) and SOCAR (6.67%).

Baku Shipyard Secures First Major Contract From Shah Deniz

SOURCE: Keppel Corp. | 23 April 2014

Baku Shipyard LLC (Baku Shipyard) has secured a contract worth US$378 million from BP Exploration (Shah Deniz) Ltd, the operator of the Shah Deniz gas field development, to design and build a Subsea Construction Vessel (SCV).

AMEC Tekfen Azfen Consortium Awarded $974 Million Contract By BP For Shah Deniz 2 Offshore Platforms, Azerbaijan

SOURCE: AMEC | 29 January 2014

The AMEC Tekfen Azfen (ATA) consortium has been awarded a contract totalling $974 million for BP-operated Stage 2 development of the Shah Deniz gas field in the Caspian Sea. AMEC will contribute its project and construction management expertise to the consortium.

KBR Awarded Major Engineering Design Contract By BP For Shah Deniz Stage 2 Project

SOURCE: KBR | 30 December 2013

KBR (NYSE: KBR) today announced that it was awarded a contract by BP Exploration (Shah Deniz) Limited to provide detailed engineering and procurement support services for the Shah Deniz Stage 2 Project located in the Azerbaijan sector of the Caspian Sea. It will be booked into backlog in Q4 2013.

Statoil Makes Final Investment Decision On Shah Deniz Stage 2 And Announces 10% Divestment

SOURCE: Statoil | 19 December 2013

Statoil ASA (OSE: STL, NYSE: STO) has together with partners in the Shah Deniz consortium in Azerbaijan today made a final investment decision for the stage 2 development of the Shah Deniz gas field in the Caspian Sea offshore Azerbaijan.

Shah Deniz Final Investment Decision Paves Way For Southern Corridor Gas Link With Europe

SOURCE: BP | 18 December 2013

The Shah Deniz consortium today announced the final investment decision (FID) for the Stage 2 development of the Shah Deniz gas field in the Caspian Sea, offshore Azerbaijan.

Shah Deniz Final Investment Decision Paves Way For Southern Corridor Gas Link With Europe - BP

SOURCE: BP | 17 December 2013

The Shah Deniz consortium today announced the final investment decision (FID) for the Stage 2 development of the Shah Deniz gas field in the Caspian Sea, offshore Azerbaijan.

Shah Deniz Major Sales Agreements With European Gas Purchasers Concluded

SOURCE: BP | 19 September 2013

The Shah Deniz consortium announced today that 25-year sales agreements have been concluded for just over 10 billion cubic metres a year (BCMA) of gas to be produced from the Shah Deniz field in Azerbaijan as a result of the development of Stage 2 of the Shah Deniz project. Nine companies will purchase this gas in Italy, Greece and Bulgaria.

Shah Deniz Targets Italian And Southeastern European Gas Markets Through Trans Adriatic Pipeline

SOURCE: BP | 28 June 2013

The Shah Deniz consortium announced today that it has selected the Trans Adriatic Pipeline (TAP) to deliver gas volumes from the Shah Deniz stage 2 project to customers in Greece, Italy and Southeast Europe.

Shah Deniz Begins Evaluating Binding Transportation Bids

SOURCE: BP | 02 May 2013

The Shah Deniz consortium has begun evaluating binding transportation offers from the two pipeline consortia offering to carry gas from the Shah Deniz field in Azerbaijan into Europe

Shah Deniz Begins Evaluating Final Gas Transportation Offers

SOURCE: BP | 05 April 2013

The Shah Deniz consortium has begun evaluating final offers it has received from the Nabucco Gas Pipeline International and Trans Adriatic Pipeline (TAP) for transportation of Shah Deniz Stage 2 gas to Europe. The submissions allow the Shah Deniz consortium to conduct the final evaluation of each of the transportation options and make an informed decision on the preferred export route to Europe.

Shah Deniz Selects A Second Export Route Option To Europe

SOURCE: BP | 28 June 2012

The Shah Deniz consortium has now concluded its evaluation of potential gas export routes towards South East and Central Europe. The Nabucco West project with a route running from the Turkish-Bulgarian border to Baumgarten has been selected as the single pipeline option for the potential export of Shah Deniz Stage 2 gas to Central Europe.

Shah Deniz Stage 2 Project Enters The Next Phase Of Development

SOURCE: BP | 17 April 2012

The Shah Deniz consortium has reached an important milestone and approved the decision to commence Front End Engineering and Design (FEED) on the estimated $25 billion Shah Deniz Stage 2 project.

Shah Deniz Consortium Excludes ITGI As European Gas Link - BP

SOURCE: Dow Jones Newswires | 20 February 2012

Shah Deniz, the consortium developing a natural gas field offshore Azerbaijan, has narrowed down its options to carry that gas to Europe, in the first major decision in a years-long process that's key in boosting Europe's supply diversification.

UK, EU Lobby To Protect Key Azeri Gas Project From Iran Sanctions

SOURCE: Dow Jones Newswires | 22 January 2012

As western governments push ahead with unprecedented sanctions on Iran, U.K. and European Union officials have lobbied U.S. lawmakers in recent weeks to ensure that any new Iran sanctions exempt a key BP PLC -led natural-gas project.

BP Says Consortia Invested $33 Billion In Azeri Energy Projects

SOURCE: Dow Jones Newswires | 02 November 2011

Investments in Azerbaijan's Azeri-Chirag-Guneshli, or ACG, and Shah Deniz fields in the Caspian Sea total $33 billion to date, the operator of both projects BP PLC said Wednesday.

Azerbaijan Ready To Ship 10 BCM/year Gas To Europe By 2017-18

SOURCE: Dow Jones Newswires | 21 September 2011

Azerbaijan will be ready to supply Europe with 10 billion cubic meters of natural gas a year by 2017-18 from its massive Shah Deniz field, the president of state energy firm Socar said Wednesday, also expressing hope that transit talks with Turkey will be finished soon.

Azerbaijan In Nabucco Talks; To Decide On Gas Export By October

SOURCE: Dow Jones Newswires | 26 May 2011

Azerbaijan is in talks to deliver natural gas to the Nabucco pipeline consortium from the Shah Deniz-2 field and will make a final decision on an export route to Europe by Oct. 1, Rovnag Abdullayev, head of state oil company Socar, said Thursday.

AMEC Awarded US$600 Million Oil & Gas Contract By BP In Azerbaijan

SOURCE: AMEC | 04 May 2011

AMEC, the international engineering and project management company, has been awarded a major brownfield contract by BP Azerbaijan, covering both their onshore and offshore assets in the region for five years with two possible four-year extensions.

AMEC Gets $600 Million Contract From BP For Projects In Azerbaijan

SOURCE: Dow Jones Newswires | 03 May 2011

AMEC PLC, the international engineering and project management company, has been awarded a $600 million contract by BP PLC to work on the oil major's projects in Azerbaijan, BP said Tuesday.

Turkey Lifts Azeri Gas Imports; EU Supply Under Threat

SOURCE: Dow Jones Newswires | 19 April 2011

Turkey said Tuesday it will increase imports of natural gas from Azerbaijan's Shah Deniz II project, potentially threatening European pipeline projects, including the European Union-backed Nabucco, that hope to secure shipments from the field.

Enough Gas To Fill Nabucco, No Downsizing Pipeline -RWE Executive

SOURCE: Dow Jones Newswires | 13 April 2011

There's more than enough natural gas to fill the Nabucco pipeline that is expected to transport gas from the Caspian and Middle Eastern regions to Austria through Turkey, and the consortium isn't considering downsizing the project, one of the venture's partners said.

BP Executive: Caspian-EU Gas Pipeline To Be 10 Bcm, Expandable

SOURCE: Dow Jones Newswires | 26 March 2011

The pipeline that will be built to transport natural gas from the Caspian basin to Europe will have a capacity of 10 billion cubic meters a year and be expandable, a BP PLC top executive said Saturday.

BP's Azeri-Chirag-Gunashli Produced 823,100 Bbl/Day In 2010

SOURCE: Dow Jones Newswires | 02 March 2011

A consortium led by BP PLC that is operating the massive Azeri-Chirag-Gunashli oil project in the Azerbaijani sector of the Caspian Sea produced on average 823,100 barrels of oil a day in 2010, below a previous target of 854,000 barrels, BP said Wednesday.

EU, Azerbaijan Sign Agreement For Natural Gas Supplies

SOURCE: Dow Jones Newswires | 13 January 2011

Azerbaijan committed Thursday to supply natural gas to the European Union, the first written pledge paving the way for Europe's bid to tap the huge Caspian energy reserves, as the bloc seeks to diversify its supply sources.

BP Consortium To Spend $3 Billion To Hike Azeri Gas Pipe Capacity

SOURCE: Dow Jones Newswires | 30 November 2010

A consortium led by U.K. oil major BP PLC will spend around $3 billion to increase capacity at a pipeline in Azerbaijan carrying natural gas from the second stage of the huge Shah Deniz field in the Caspian Sea, the company said Tuesday.

Shah Deniz Consortium Likely To Shortlist Gas Buyers By Year-End-Source

SOURCE: Dow Jones Newswires | 08 October 2010

The consortium of energy companies developing the second phase of Azerbaijan's Shah Deniz offshore natural gas field is likely to shortlist buyers for the gas by the end of the year, a person familiar with the negotiation told Dow Jones Newswires.

OMV In Talks With Azerbaijan On Nabucco Gas-Austrian Fin Ministry

SOURCE: Dow Jones Newswires | 02 September 2010

OMV AG (OMV.VI), the Austrian partner of the planned Nabucco natural gas pipeline, is now in talks with Azerbaijan's state oil company SOCAR about gas supply for the European Union-backed pipeline project, the Austrian Finance Ministry said Thursday.

RWE Signs Gas Partnership With Iraq's Kurdistan Region

SOURCE: Dow Jones Newswires | 27 August 2010

German utility RWE AG said Friday it has signed an agreement with the Kurdistan regional government to develop the northern Iraq region's natural gas infrastructure and source gas from the area to feed the planned Nabucco pipeline.

Nabucco Pipeline Decision Could Be Postponed To Next Year -OMV

SOURCE: Dow Jones Newswires | 04 August 2010

OMV AG Wednesday said a final decision on whether to build the 3,000 kilometer long, European Union-backed Nabucco gas pipeline from the project's partners could be postponed to the beginning of 2011.

Statoil: Shah Deniz 2 Consortium Seeks Talks With Customers

SOURCE: Dow Jones Newswires | 04 August 2010

Norwegian energy company Statoil ASA said Wednesday that the consortium operating the Shah Deniz 2 gas field in Azerbaijan plans to begin bilateral talks with potential customers over the supply of around 10 billion cubic meters of gas a year.

AMEC Awarded Five-Year Master Services Agreement And $340million Project For BP, Azerbaijan

SOURCE: AMEC | 13 July 2010

AMEC, the international engineering and project management company, as part of the AMEC Tekfen Azfen (ATA) consortium, announces the award of a five-year Master Services Agreement by BP Azerbaijan.

BP's Hayward Reiterates Commitment To Azerbaijan Projects

SOURCE: Dow Jones Newswires | 06 July 2010

BP PLC's Chief Executive Tony Hayward Tuesday reiterated his company's commitment to Azerbaijan, where the company operates the huge Shah Deniz field.

Azerbaijan May Launch Shah Deniz Stage 2 In 2014

SOURCE: Dow Jones Newswires | 03 June 2010

Azerbaijan may launch the second stage of the BP PLC (BP)-led Shah Deniz field in the Caspian Sea in 2014, two years earlier than planned, Khoshbakht Yusifzade, vice president of Azeri state oil company Socar, said Thursday.

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