Abstarct: Nowadays, production from the underground resources is increasing due to the skyrocketing demand of the energy resources like oil and gas. However, new issues are raised in deep water drilling that were not encountered in onshore drilling and shallow water offshore drilling. One of the most important problems in deep water drilling is shallow water flooding (SWF). This flow occurs in depth ranging from 500 to 1000 meters below the seabed and the resean is abnormally high-pressure formations. Unconsolidated formations like sandstones and mudstones, can play a significant role in creating such flows. The consequences of SWF are unwanted blowout of sand and water mixture into the well during drilling, intensive changes in drilling fluid properties, losing well integrity and even the whole formation. In present study, simulation of SWF conducted on Shah-Deniz field in Caspian Sea and 70 km southeast of Baku. This field consists of two oil and gas reservoirs and the gas reservoir is the biggest gas reservoir of Azerbaijan. Accordingly, a model was bulit using CMG-STARS simulation package and validation of the model performed using previously performed simulation in Central China Sea. Then, sensitivity analysis carried out on pressure changes, production rate and drilling time. The results of this study can be applied for future operations in Caspian Sea.