BP says Shah Deniz 2 project on schedule

(Baku Daily) - Since the final investment decision, the SD2 project has progressed to schedule, the BP office in Baku said.

On 20 September, the Sangachal Terminal near Baku hosted the   groundbreaking for the Southern Gas Corridor. This marked a major milestone in the realisation of the project which will provide for export of 16 billion cubic metres per year (bcma) of gas from the giant Shah Deniz field through some 3,500 kilometres of pipelines to Georgia, Turkey, Greece, Bulgaria, Albania and Italy. 

First gas is targeted for 2018, with sales to Georgia and Turkey; first deliveries to Europe will follow approximately a year later.

Most of the major engineering, construction and supply contracts, valued at some $9.6 billion, have been awarded and early works have already started in most construction areas across Azerbaijan and Georgia. 

These construction and supply contracts include:

- construction and commissioning support of the SD2 onshore terminal facility at Sangachal near Baku;

- fabrication, load out and offshore hook-up and commissioning of the topsides units of the two SD2 platforms; 

- fabrication of the jackets for the two planned offshore platforms, pin piles and subsea structures; 

- all offshore transport and installation work; 

- provision of detailed engineering, project management and procurement support services for the offshore and onshore facilities;

- supply of the subsea production systems;

- design and construction of a Subsea Construction Vessel to be used for installation of the subsea structures; 

- subsea and pipeline engineering and project management services;

- engineering, procurement and construction of the offshore platform living quarters

- subsea flow-line coating and early subsea export line coating

Work has commenced at the fabrication yards for jackets and decks, as well as at the onshore terminal construction sites. In addition, first consignments of steel for fabrication of the platform jackets and topside units have already arrived in the country. These activities complement overall progress across the Southern Corridor projects. 

Work at all construction yards is underpinned by a continued commitment to safe site activities. Baku Deepwater Jackets Factory (BDJF) has already achieved one million man hours and the ATA yard (AMEC-Azfen-Tekfen) two million man hours without an injury. 

The ATA yard upgrades are nearing completion, and fabrication of decks, jackets and subsea equipment is all ahead of schedule. 

As noted above, drilling activities continue successfully using the Istiglal and Heydar Aliyev rigs with six production wells already completed in preparation for first gas. These two rigs will continue working on the Shah Deniz field to deliver all the wells required to deliver production up to the planned plateau level of 16 bcma.