Oil And Gas Projects 2017

Shah Deniz Project Phase 2

  • Cost: $28 billion (estimate)
  • Timeframe: 2015-2018 (first gas production)
  • Location: Azerbaijan

Approximately $28 billion in financial investment will be needed to generate the gas then transport it to the Georgia/Turkey border.


Once on the Turkish border, supplementary pipeline systems will supply 6 bcma of gas to Turkey and an additional 10 bcma of gas to markets in Europe, in a route known as the Southern Gas Corridor.

Shah Deniz gas will travel 3,500 kilometres, to elevations of over 2,500 metres, and over 800 metres beneath the sea.

Shah Deniz Phase 2, is one of the largest gas projects in the world, it will also help increase European energy security by bringing Caspian gas resources to markets in Europe for the very first time.

The current principle for Shah Deniz Stage 2 includes:

  • 2 new bridge-linked offshore platforms.
  • 26 gas production wells which will be drilled with 2 semi-submersible rigs.
  • 500 km of subsea pipelines will link the wells with the onshore terminal.
  • Upgrade of the offshore construction vessels
  • Expansion of the Sangachal terminal to accommodate the new gas processing and compression facilities.

During the third quarter of 2016, implementation of the Shah Deniz Phase 2 project continued successfully.


The project is now over 85% complete in terms of engineering, procurement and construction, and stays firmly on track for first gas from Shah Deniz Stage 2 in 2018.

Project activities continue on all offshore and onshore sites and fabrication yards of the country including the Sangachal Terminal, ATA (AMEC/Tekfen/Azfen) yard near Baku, Baku Deepwater Jackets Factory (BDJF) and along the pipeline route.

In September 2016, a considerable milestone was achieved in the project with the sail away of the jacket for 1 of the Shah Deniz Stage 2 platforms from the BDJF yard for offshore installation.

The certified sail away ceremony, which was held at BDJF, was attended by H.E. President Ilham Aliyev of the Republic of Azerbaijan.

To this day the transportation, launch, and positioning activities of the Production and Risers (PR) platform jacket structure have been completed safely while pile installation is still ongoing.

The pipelay barge Israfil Huseynov has completed installation of all four North Flank and West Flank flowlines and is currently making progress on the remaining 32″ gas export lines.

The subsea construction vessel Khankendi has continued good progress and started its main engines in September 2016.


Once finished, this new vessel will be deployed to the Shah Deniz 2 area for the construction of the subsea structures.

At the ATA fab yard, construction of both Shah Deniz 2 platform topsides is well above 90% complete and commissioning is progressing well.

The flare tower has already been safely installed on the Production and Risers platform so it’s all systems go for Shah Deniz.

It is estimated that in the third quarter of 2016, there was over 24,000 people that were involved with construction activities across all main contracts in Azerbaijan, and over 80% of them were Azerbaijani nationals which is a welcome sight for the countries economy.

Click next below to see Shell’s latest live Prelude project which has been labelled as nothing more but groundbreaking.

Related Articles: