Baku, Azerbaijan, Jan.13
By Emil Ismayilov - Trend:
The latest events on the international gas and oil markets did not affect the implementation of projects within the Southern Gas Corridor, a senior representative of SOCAR (State Oil Company of Azerbaijan) told Trend, responding to a question about the possible impact of changes in Russia's plans to supply gas to Europe (the rejection of the project South Stream) and the decline in oil prices on the implementation of projects within the Southern Gas Corridor.
"It has absolutely no effect on the implementation of the projects," he said. "Everything goes according to schedule, and there are no delays or problems."
He said that in particular, work within the expansion of the South Caucasus gas pipeline, construction of Trans-Anatolian gas pipeline (TANAP) and other work, purpose of which is the delivery of Azerbaijani gas to Europe, is continued.
SOCAR representative said that the decline in world oil prices affects the general plans of all companies, and SOCAR, which operates in the global economic space, also feels the effects of it.
On the other hand, periodic fluctuations of world oil prices are part of the global economy, he said.
He went on to add that there was a time when oil prices stood at $30 a barrel, and the oil price level was even lower ($15 per barrel) during the decision-making on the project of development of Azeri-Chirag-Guneshli Azerbaijani offshore oil and gas fields block and the construction of the Baku-Tbilisi-Ceyhan oil pipeline.
"However, we remember a higher level as well, when oil prices exceeded $140 per barrel," said the representative of SOCAR.
The Southern Gas Corridor will allow Europe to diversify its hydrocarbon supply sources and strengthen energy security and also will allow Azerbaijan to obtain a new market in Europe. A final investment decision was made on December 17, 2013 on the Stage 2 of the Shah Deniz offshore gas and condensate field's development. The gas produced at this field will first go to the European market (10 billion cubic meters). Around six billion cubic meters will be annually supplied to Turkey.
As part of the second stage of the field's development, gas will be exported to Turkey and European markets by expanding the South Caucasus gas pipeline and the construction of Trans-Anatolian (TANAP) and Trans-Adriatic (TAP) gas pipelines.
The share distribution among the agreement parties (after SOCAR's and BP's acquisition of Statoil's share in the project) is as follows: BP (operator) - 28.8 percent, Statoil - 15.5 percent, NICO - 10 percent, Total - 10 percent, Lukoil - 10 percent, TPAO - nine percent, and SOCAR - 16.7 percent.
Earlier, Total sold its share in the project to the Turkish company TPAO, and after completion of the deal the latter's share in the project will be 19 percent.
The Norwegian Statoil sold a 15.5 percent share in the project to the Malaysian company Petronas. The deal for purchase and sale of shares is not yet complete.
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