Azerbaijan, Baku, Sept. 19 / Trend E. Ismayilov /
The revenues on the contracts for Azerbaijani Shah Deniz II gas supply to Europe signed in Baku will hit around $ 200 billion, State Oil Company of Azerbaijan (SOCAR) head Rovnag Abdullayev said during a signing ceremony today.
According to him, the negotiations on reaching an agreement for Azerbaijani gas supply to Europe have lasted for almost five years. An agreement that will lay the foundation for a new era of Azerbaijan's oil and gas sector was reached.
"The agreement will ensure the annual supply of 10 billion cubic meters of gas to Europe, which would be possible by 2019," Abdullayev said. "The gas within Shah Deniz-2 will be supplied to Turkey in 2018."
"This concerns only the second stage of Shah Deniz field development, but Azerbaijan has gas potential, including the deep natural gas at Azeri-Chirag-Guneshli fields, Absheron field, expected reserves at Shafaq-Asiman prospective structures," he said. "This will allow moving beyond the Italian, Bulgarian and Greek markets."
Gas to be produced within the Shah Deniz-2 project is the main source for the Trans Adriatic Pipeline (TAP), which in June was selected as a route for transportation of Azerbaijani gas to European markets.
The TAP project is designed to transport gas from Caspian region through Greece, Albania and Adriatic Sea to the South of Italy, and then to the Western Europe.
The initial capacity of TAP will amount to 10 billion cubic metres per annum with the possibility of expanding to 20 billion cubic metres per annum.
Currently TAP's shareholders include BP (20 percent), SOCAR (20 percent), Statoil (20 percent), Fluxys (16 percent), Total (10 percent), E.ON (9 percent) and Axpo (5 percent).
The construction of TAP is planned to start in 2015.
The reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.
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