BP has initiated production from the East North flank of the Shah Deniz field in Azerbaijan, heralding a significant advancement in one of the globe's most expansive gas-condensate reserves and representing BP's most substantial gas discovery to date.

The onset of production from the East North flank, an integral component of the Shah Deniz 2 development, occurred on February 13, 2024, following the culmination of meticulous offshore construction and commissioning endeavors. This newly operational sector comprises five wells, two production manifolds, two recently installed flowlines stretching approximately 30 kilometers collectively, and a myriad of subsea structures seamlessly integrated with the esteemed Shah Deniz reservoir.

At present, the existing infrastructure at Shah Deniz exhibits a formidable production capacity, churning out an estimated 79 million standard cubic meters of gas daily, equating to roughly 29 billion standard cubic meters on an annual basis. Nestled on the deep-water shelf of the Caspian Sea, about 70 kilometers southeast of Baku, the Shah Deniz field operates within water depths ranging from 50 to 500 meters, showcasing its technical complexity and strategic significance in the region.

In 2018, Shah Deniz commemorated a noteworthy achievement by surpassing the milestone of 100 billion cubic meters of total gas production since the initiation of operations in 2006. This momentous occasion coincided precisely with the twelfth anniversary of the initial announcement heralding commercial gas production and the formal commencement of operations of the South Caucasus Pipeline, underscoring the field's enduring legacy and pivotal role in Azerbaijan's energy landscape.

During the fiscal year 2023, BP and its consortium partners earmarked approximately $2.2 billion for operating expenditures and around $892 million for capital expenditures dedicated to Shah Deniz activities. The lion's share of these investments was allocated towards the Shah Deniz 2 project, a monumental undertaking poised to substantially bolster gas production by an additional 16 billion cubic meters annually, complementing the approximately 10 billion cubic meters generated annually by Shah Deniz Stage 1.

The Shah Deniz 2 initiative has entailed the drilling of a total of 21 wells, spanning various sectors of the field. Among these are five wells positioned on the North flank, four wells situated on the West flank, an additional four wells located on the East South flank, five wells positioned on the West South flank, and three wells strategically positioned on the East North flank. Each drilling operation represents a testament to BP's unwavering commitment to harnessing the full potential of the Shah Deniz reservoir and solidifying Azerbaijan's position as a formidable player in the global energy arena.