British energy major bp said Thursday that its $2.9 billion Shah Deniz Compression (SDC) project in Azerbaijan was running ahead of schedule after making steady progress in the first half of 2026.
"The SDC platform topsides and jacket fabrication activities moved forward as planned at the Bayil fabrication yard and the Heydar Aliyev Baku Deepwater Jackets Factory respectively, with steady progress on primary steel and structural components, including pin piles, jacket elements and subsea structures," bp said in a statement.
Engineering work for the project also remained on track, while production of a high-voltage subsea power and fiber-optic cable and subsea pipe sections was completed.
The project is intended to tap low-pressure gas reserves and extend production from the Shah Deniz field. It is expected to unlock about 50 billion cubic meters of additional gas and 25 million barrels of condensate.
It includes an electrically powered, normally unattended offshore compression platform, modifications to the existing Shah Deniz Alpha and Bravo platforms and work at the Sangachal terminal.
Construction of the new platform is expected to be completed in 2029. It is scheduled to begin receiving gas from Shah Deniz Alpha that year and from Shah Deniz Bravo in 2030.
bp and its partners spent about $1.39 billion on operating costs and $712 million on capital investment at Shah Deniz in the first half of 2026.
The field produced about 14 billion cubic meters of gas and 2 million metric tons of condensate, equivalent to roughly 15 million barrels, during the six-month period.
Shah Deniz continued to supply gas to Azerbaijan, Georgia, Türkiye and European customers. Its existing facilities can produce about 76.8 million cubic meters of gas per day, or roughly 28 billion cubic meters annually.
Work on the broader Shah Deniz 2 development also continued, with the fifth well on the field's western flank starting production in April.
bp operates Shah Deniz with a 29.99% interest alongside its partners including Lukoil with 19.99%, TPAO with 19%, Southern Gas Corridor with 16.02%, NICO with 10% and MVM with 5%.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr
