The Shah Deniz gas field and its Consortium
The centrepiece of the Southern Corridor is the Shah Deniz gas field. It is the largest in Azerbaijan and its reserves account for 1.4 tcm. Discovered in 1999, it supplies Georgia and Turkey since 2006 through the South Caucasus Pipeline. It is operated by the homonymous Consortium lead by BP, which has a share of 28.8%. Other shareholders are TPAO (19%), SOCAR (16.7%), Petronas (15.5%), Lukoil (10%) and Nico (10%). In 2008 discussions started on the production of additional gas volumes and on their transportation routes. Negotiation passed through a Turkey-Azerbaijan Memorandum of Understanding in 2010 and were finalized with the Final Investment Decision (FID) in 2013. Shah Deniz II will initially add further 16 bcm of gas production to the 9 bcm produced by Shah Deniz Stage 1.