Final Investment Decision made on Shah Deniz-2 project in Azerbaijan

Photo: Final Investment Decision made on Shah Deniz-2 project in Azerbaijan  / Oil&Gas

Baku, Azerbaijan, Dec. 17

By Aygun Badalova - Trend:

The consortium of Azerbaijani Shah Deniz field development has made the final investment decision (FID) on the second phase of offshore gas condensate field development.

Authorization of the "Shah Deniz-2" brings the project to the stage of immediate execution.

The agreement was signed by SOCAR president Rovnag Abdullayev and BP regional president for Azerbaijan, Georgia and Turkey Gordon Birrell

The contract to develop the offshore Shah Deniz field was signed on June 4, 1996.

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

The cost of the second phase of Shah Deniz field's development is estimated at $25 billion.

The second development phase plans to produce some 16 billion cubic meters of gas, six billion cubic meters of which will be transported to Turkey and ten billion cubic meters will be delivered to Europe.

In June the Shah Shah Deniz Consortium selected the Trans Adriatic Pipeline (TAP) as a route for transportation of gas to the European markets.

The initial capacity of the TAP pipeline will stand at 10 billion cubic meters per year, with a chance of increasing these figures to 20 billion cubic meters per year.

Trans-Anatolian gas pipeline (TANAP) will be built to transport gas through Turkey; this pipeline will ensure gas deliveries to the European border.

Follow us on Twitter @TRENDNewsAgency

Tags: Shah Deniz 2