Shah Deniz commences FEED phase with $25 billion investment

Shah Deniz commences FEED phase with $25 billion investment

10:56 AM, 18th April 2012
Shah Deniz commences FEED phase with $25 billion investment
Rashid Javanshir, President, Azerbaijan, Georgia and Turkey region, BP.

LONDON, UK: 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. The Shah Deniz Stage 2 project will bring gas from the Caspian Sea to markets in Turkey and Europe, opening up the ‘Southern Gas Corridor.’ Achieving this important milestone allows the consortium to maintain its target for first gas exports around the end of 2017.

The Shah Deniz 2 project is set to produce 16 billion cubic metre of gas per year. The entry into FEED represents the start of a key phase in the project during which engineering studies will be refined, further wells will be drilled, commercial agreements will be finalised and key construction contracts will commence. During the FEED phase of the project, the Shah Deniz consortium will finalise its selection of export routes across Turkey and into Europe.

“Over the past two years we have made substantial progress on all the individual components of this mega-project. Engineering studies, commercial agreements and the support of the State of Azerbaijan and other governments give the Shah Deniz consortium the confidence to embark upon this FEED phase. With more than 26 wells, two new platforms, a terminal expansion and up to 4000km of new pipelines to Europe, this chain of major projects represent one of the largest oil and gas developments in the world,” said Rashid Javanshir, President, Azerbaijan, Georgia and Turkey Region, BP.

© WOC News 

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