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Some $40 billion to be spend for Shah Deniz-2 project

Oil&Gas Materials 5 December 2013 20:26 (UTC +04:00)
Partners on development of Shah Deniz gas and condensate field will spend some $40 billion on the second phase of the project’s realisation,
Some $40 billion to be spend for Shah Deniz-2 project

Istanbul, Turkey, Dec. 5

By Abbas Akhundov - Trend:

Partners on development of Shah Deniz gas and condensate field will spend some $40 billion on the second phase of the project's realisation, BP's Regional President for Azerbaijan, Georgia and Turkey (AGT), Gordon Birrell said at the Caspian Forum held in Istanbul on Dec. 5.

About $20 billion will be spent for creation of the production infrastructure, Birrell said.

He went on to add that this year expenditures on development of the Shah Deniz field will amount to $2 billion.

Two offshore platforms will be installed and more than 20 underwater wells will be drilled in order to produce additional 16 billion cubic meters of gas per year as part of the Shah Deniz-2 project.

Peak production at the field in the first stage of development is projected at nine billion cubic meters. According to forecasts, in the second stage of field's development the gas production can be brought up to 24 billion cubic meters per year.

Reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.

The contract on the field's development was signed on June 4, 1996. Stakeholders are: BP (operator) and Statoil with 25.5 per cent each, NICO with 10 per cent, Total with 10 per cent, Lukoil with 10 per cent, TPAO with nine per cent and SOCAR with 10 per cent.

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