Shah Deniz installed

May 4, 2006, 14:30 CEST

The gas and condensate production platform for the Shah Deniz field in the Caspian Sea off Azerbaijan has now been installed. Statoil has a 25.5% interest in the field, which is operated by BP.

The platform has a key role in the gas and condensate development in the Caspian off Azerbaijan, according to Thor Viggo Aarrestad, project manager for Statoil.

“This is phase I of the development of the field, and successful installation is essential to the successful delivery of first production on 30 September 2006. The completion of the installation is on schedule and so far the pipelaying and terminal work has also gone according to plan.”

The sections for the TPG500 platform have been built in various places in the world and transported to the Zykh yard in Baku for assembly. The main structure was built in Singapore in four sections, and the drilling derrick and equipment were constructed in Grimstad, Norway. Other parts of the platform have been built in Azerbaijan.

The project was sanctioned in February 2003.

Shah Deniz is planned to produce some 8.5 billion cubic metres of gas per year and 37,000 barrels of condensate per day.

The gas from the field will mainly be piped through the Sangachal terminal south of Baku and from there to Turkey, but some of the gas will also be sold to Azerbaijan and Georgia. The condensate will be piped to Ceyhan on Turkey's Mediterranean coast.

Statoil is commercial operator and responsible for gas sales, contract administration and business development for Shah Deniz.