BAKU, Azerbaijan, September 23. The Asian
Development Bank (ADB) has marked as closed the financing
facilities totaling $475 million for the Shah Deniz Stage II Gas
Field Expansion Project in Azerbaijan, according to the bank’s
project information.


The financing package comprised a $250 million loan from ADB’s
ordinary capital resources and a $225 million B-loan. The
borrower/company listed for the financing is Lukoil Overseas Shah
Deniz. Both facilities are currently shown as “Closed” in ADB’s
project database. The financing was approved in August 2015.


The phase 2 development of Shah Deniz was sanctioned in 2013 and
has proved to be one of the largest and most complex gas projects
in the world. It represents the first subsea development in the
Caspian Sea and the largest subsea infrastructure operated by bp
worldwide. It is also a gateway to the Southern Gas Corridor that
delivers natural gas from the Caspian Sea directly to European
markets.


Offshore, the Shah Deniz 2 project includes 26 subsea wells,
500km of subsea pipelines and flowlines and a new bridge-linked
double platform. Gas is transported onshore through an 85 km
pipeline to the Sangachal terminal, which underwent a major
expansion to accommodate the new increased gas output. The project
also expanded SCP - 428km of new pipeline in Azerbaijan and 59km in
Georgia, including three new compression facilities, 1 in
Azerbaijan at the Sangachal terminal and 2 in Georgia, pigging and
block valve stations pushing the gas to TANAP and TAP pipelines
across its 3,500 km long journey to Europe.


bp data for H1 2026 shows that in total, 24 wells have been
drilled for Shah Deniz 2 to date.


“These include five wells on the North flank, five wells on the
West flank, four wells on the East South flank, five wells on the
West South flank and five wells on the East North flank,” said the
company.







bp notes that during the first half of 2026, the Shah Deniz
Alpha platform completed additional perforation activities on the
SDA09, SDA07 and SDA04 wells, and commenced drilling the SDA12
well.


“The Shah Deniz 2 project progressed with the wells programme
activities using the Istiglal and Heydar Aliyev rigs. During the
first half of 2026, the Istiglal rig completed the SDD05 well on
the West flank, carried out intervention activities on the SDF02
well on the West South flank, and is currently undertaking
completion activities on the SDH04 well on the East North flank.
The Heydar Aliyev rig completed the drilling of the SDH05 well on
the East North flank and started rig maintenance activities in
preparation for drilling the SDD06 well on the West flank,” the
report reads.


During the first six months, the Shah Deniz field continued to
provide gas to markets in Azerbaijan (to SOCAR), Georgia (to GOGC),
Türkiye (to BOTAS), BTC in multiple locations and to buyers in
Europe.


In the first half of 2026, the field produced around 14 billion
standard cubic metres of gas and about 2 million tonnes (around 15
million barrels) of condensate in total from the Shah Deniz Alpha
and Shah Deniz Bravo platforms.


Shah Deniz participating interests are: bp (operator – 29.99%),
LUKOIL (19.99%), TPAO (19.00%), SGC (16.02%), NICO (10.00%) and MVM
(5.00%).