Shah Deniz-2 FID to launch new generation of investments in gas field

Photo: Shah Deniz-2 FID to launch new generation of investments in gas field / Oil&Gas

Baku, Azerbaijan, Dec. 17

By Seymur Aliyev - Trend:

The signing of the final investment decision of the Shah Deniz-2 project launches a new generation of investments in the gas field, Foreign Minister of Italy Emma Bonino said at the signing ceremony of the final investment decision on the project of the second phase of the Shah Deniz gas condensate field development in Baku today.

"I am sure that this will strengthen our political and economic relation and in this framework my presence in Baku testifies to our determination to deepen, widen and enrich our bilateral relations," she said.

This event, according to Bonino, is a result of long standing cooperation between the government of Azerbaijan and Italy, Shah Deniz consortium, SOCAR and European energy companies, involved in the project.

The Trans Adriatic Pipeline project will be an important contribution to Italian gas demands and to its purpose to become an energy hub for the Southern Energy Corridor and for the Mediterranean region, she said.

"One of the major goals of our national energy strategy is to improve our security of supply especially in the gas sector and reduce dependence on imports," Bonino added.

She believes the Italian economy will continue to increase its gas consumption over next few decades.

"So for Italy it is of great importance to have regular and affordable gas imports from traditional partners but also from new emerging producers," Bonino said.

She believes that a key factor for greater energy security in Italy and Europe is the need to diversify their sources and transit routes and the TAP project represents for both Italy and Europe a way to this target.

During the EU presidency in the second semester of 2014, Italy will pay special attention to the European energy security issue and to development of the European energy strategic infrastructure, Bonino added.

The signing ceremony of the final investment decision on Shah Deniz-2 project was held in Baku today.
Azerbaijani President Ilham Aliyev, his spouse Mehriban Aliyeva, the heads of several countries and governments attend the event.

Shah Deniz-2 project authorization means the transition of the project from the concept into an immediate implementation stage.
The contract to develop the offshore Shah Deniz field was signed on June 4, 1996.
Participants to the agreement are: BP (operator) - 28.8 percent, Statoil - 15.5 percent, NICO - 10 percent, Total - 10 percent, Lukoil - 10 percent, TPAO - nine percent, SOCAR - 16.7 percent.
Shah Deniz reserves are estimated at 1.2 trillion cubic meters of gas.
The cost of the second phase of development of Shah Deniz gas condensate field is estimated at $25 billion.
Within the second phase of development it is planned to produce some 16 billion cubic meters of gas (within the first phase - 9 billion), six billion of which will be transported to Turkey and ten billion to Europe.

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