Shah Deniz Production Sharing Agreement

In 2014, Shah Deniz`s existing facilities continued to be decoupled, increasing their production capacity from 27.3 million standard cubic metres to 29.5 million cubic metres of standard gas per day. In 2018, Shah Deniz celebrated 100 billion cubic meters of total gas extraction from the field since leaving service. This milestone was reached at the end of December, exactly 12 years after the first announcement of the commissioning of commercial production of off-field gas and the commissioning of the South Caucasus pipeline. The production capacity of the existing Shah-Deniz facility is currently more than 56 million cubic metres of standard gas per day, or more than 20 bcma. The total production of Azeri Chirag Guneshli amounted to about 588,000 barrels per day, of which 51,000 b/d of the Chirag platforms, 137,000 b/d of the central Azerbaijani platforms, 124,000 b/d of The West Azerbaijani platforms, 82,000 b/d of The East Azerbaijan platforms, 117,000 b/d of Deepwater Gunashli platforms, 77,000 b/d of Western Chirag platforms for one year (2017). [11] The Shah-Deniz program began producing gas at the end of December 2006, three months later than planned, and had to be briefly closed in January 2007. Azerbaijan announced that the field had resumed production only to admit that it had been shut down for a few weeks due to technical problems. The closure forced Georgia to buy emergency gas from Russia at a market price. Georgia hopes that Shah Deniz`s production will allow it to reduce its energy and political dependence on Russia. [7] Shah Deniz`s Exploration, Development and Production Sharing Agreement (PSA) was signed on 4 June 1996 between SOCAR and some foreign oil companies. On 4 October 1996, the Azerbaijani Parliament approved the document “Exploration, Development and Sharing of Production (EPI)”. Shah Deniz`s gas and condensate field was discovered in 1999. An intergovernmental agreement and a “purchase and purchase agreement” were signed on 12 March 2001 in Ankara by delegates from Azerbaijan and Turkey, with the participation of President Sezer and President Heyder Aliyev.

[3] An intergovernmental agreement and relevant agreements on the transport and sale of natural gas were signed by delegates from Azerbaijan and Georgia, with the participation of President Shevardnadze and President Aliyev on 29 September 2001.

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