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RWE: Development of perspective offshore structure Nakhchivan in Azerbaijan to contribute to project Nabucco project

Oil&Gas Materials 10 March 2010 11:23 (UTC +04:00)
Development of perspective offshore structure Nakhchivan by German RWE can contribute to implementation of Nabucco project, RWE board chairman Juergen Grossmann said today in Baku.
RWE: Development of perspective offshore structure Nakhchivan in Azerbaijan to contribute to project Nabucco project

Azerbaijan, Baku, March 10 / Trend , E. Ismayilov /

Development of perspective offshore structure Nakhchivan by German RWE can contribute to implementation of Nabucco project, RWE board chairman Juergen Grossmann said today in Baku.

SOCAR (State Oil Company of Azerbaijan) and German RWE signed a memorandum of understanding for perspective offshore structure Nakhchivan in the Azerbaijani sector of the Caspian Sea.

"This is an independent project. It will be developed independently, but I hope that this project will contribute to the Nabucco project," Grossmann said.

SOCAR head Rovnag Abdullayev said during the signing ceremony that RWE is an active participant in the Nabucco project. Joining to this project RWE became a turning point for it.

"I believe that we will reach a consensus on the Nabucco project  and we will work together on implementation of this project," Abdullayev said.

According to SOCAR experts, despite the fact that previously commercially attractive reserves on the structure were not revealed, but the drilling conducted on the structure showed good results, which could indicate the presence of reserves.

The reserves on the structure are projected at 300 billion cubic meters of gas and 40 million tons of gas condensate.

The contract for the development of the perspective offshore structure Nakhchivan was signed on 1 August 1997. Participants to the project were: ExxonMobil - 50 percent, SOCAR - 50 percent. The contract was closed due to discovery of commercially unattractive volumes of hydrocarbons.

German energy concern RWE is one of six shareholders in the project of Nabucco pipeline , designed to transport gas from the Caspian region and the Middle East to the EU. Other participants of the project are Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas. Each of participants has equal share to the amount of 16.67 percent. 

At present, the German company RWE Supply & Trading discusses with SOCAR (State Oil Company of Azerbaijan) the possible supplies of gas extracted in the second phase of the development of the offshore field Shah-Deniz via Nabucco pipeline. According to RWE, by 2014-2015, Azerbaijan will have 16 billion cubic meters of gas for export through the development of the second phase of the development of the Shah Deniz field.

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