Azerbaijan, Baku, Aug. 7 / Trend E. Ismailov /
The consortium for development of Azerbaijani gas condensate field Shah Deniz in the Azerbaijani sector of the Caspian Sea plans to spent some $ 1.9 billion on the project's second stage, according to a BP report on the results of activity in 2012.
It was forecasted earlier that some $ 2.3 billion will be allocated this year for the second stage of the Shah Deniz field development.
According to the report, the terms of sale of gas from Shah Deniz have been agreed with the purchasers in Italy, Greece and Bulgaria, and will be consolidated in September.
"A final investment decision on the project is planned to be taken in the fourth quarter of this year, and the first gas from the field will be produced in 2018," the report says.
Earlier, the Shah Deniz consortium has chosen the Trans Adriatic Pipeline project as the route for transporting gas to Europe.
Two offshore platforms will be installed and more than 20 subsea wells drilled to produce an additional 16 billion cubic meters of gas per year under the Shah-Deniz-2. Peak production output at the field where the first stage of development is projected at nine billion cubic meters. It is predicted that gas production can be brought up to 24 billion cubic meters a year during the second stage of the field's development.
The work to expand the South Caucasus gas pipeline has also been planned.
Shah Deniz reserves are estimated at 1.2 trillion cubic meters of gas.
The contract to develop the offshore Shah Deniz field was signed on June 4, 1996.
Participants to the agreement are: BP (operator) - 25.5 per cent, Statoil - 25.5 per cent, NICO - 10 per cent, Total - 10 per cent, Lukoil - 10 per cent, TPAO - nine per cent and SOCAR - 10 per cent.
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