Aug. 17
Large vessel under Shah Deniz-2 project modernized in Azerbaijan
Azerbaijan has completed the modernization of major diving support vessel "Tofiq Ismayilov" within the second stage of development of a large gas condensate field "Shah Deniz" in the Azerbaijani sector of the Caspian Sea, a source on the oil and gas market of Azerbaijan said.
Two of the three vessels have been already modernized within the framework of the "Shah Deniz-2" - the pipe lay barge "Israfil Huseynov" and the diving support vessel "Tofiq Ismayilov", according to the source.
"The vessel has already sailed to the open sea for test trials and will soon be involved in the project," said the source. "The modernization of the derrick barge "Azerbaijan" will also be completed in the near future."
The contract worth $1.8 billion on the offshore transport and installation of both jackets and topside units, subsea production systems and subsea structures, as well as the laying of over 360 kilometers of subsea pipelines, diving support services, the upgrade of three installation vessels - the pipe lay barge "Israfil Huseynov", the diving support vessel "Tofiq Ismayilov" and the derrick barge "Azerbaijan" was signed in April 2014.
Earlier, regional president of BP for Azerbaijan, Georgia and Turkey Gordon Birrell said that the work on modernization of "Israfil Huseynov" pipe lay barge has been completed and it would be able to start the underwater pipe laying work in coming days.
As part of the implementation of the Shah Deniz project, the annual gas production volume will increase from 9 billion cubic meters (within the first phase) by additional 16 billion cubic meters in the second phase. Two offshore platforms will be installed and over 20 subsea wells will be drilled to produce additional volumes of gas within Shah Deniz-2 project.
As part of the second stage of the field's development, gas will be exported to Turkey and European markets by expanding the South Caucasus gas pipeline and the construction of Trans-Anatolian (TANAP) and Trans-Adriatic (TAP) gas pipelines.
The volume of gas produced at Shah Deniz field stood at 5.2 billion cubic meters in the first half of 2015, while the volume of condensate production at this field totaled 1.2 million metric tons (9.8 million barrels), compared to 4.75 billion cubic meters of gas and 1.12 million metric tons of condensate in the same period of 2014.
The contract for development of the Shah Deniz offshore field was signed on June 4, 1996. The field's reserve is estimated at 1.2 trillion cubic meters of gas. The shareholders are: BP, operator (28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NICO (10 percent) and TPAO (19 percent).
Aug. 18
TAP gas project to sign large contracts
Trans Adriatic Pipeline AG (TAP) will conclude several large contracts this year, including onshore and offshore pipeline construction, compressor stations, line pipes, Lisa Givert, TAP head of Communications told Trend.
Givert said that currently TAP is in early discussions with several lenders.
"TAP expects to secure funding from a number of multilateral institutions, such as the European Bank for Reconstruction and Development and the European Investment Bank, as well as Export Credit Guarantee Agencies of a number of OECD countries involved in the supply of goods and services," Givert said.
"In addition, TAP's financing is foreseen to include commercial lenders," she said, adding that it is too early to comment on any further details.
Regarding the cost of the project, she said TAP would be in a position to reveal it once all the major contracts have been awarded and construction has started.
Earlier the European Investment Bank (EIB) said in a statement on its website that it was considering lending 2 billion euro ($2.23 billion) to the project company in charge of TAP. The project has been included in the European Commission's list of 33 priority energy security Projects of Common Interest, according to the statement.
The bank is currently considering the possibility of allocating a loan but it has not been approved by the Board of Directors of the bank.
TAP will transport natural gas from the giant 'Shah Deniz 2' field in Azerbaijan to Europe. The approximately 870 km long pipeline will connect with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.
The pipeline's construction is expected to start in 2016.
TAP's initial capacity will be 10 billion cubic meters per year, expandable to 20 billion cubic meters per year.
TAP's shareholding is comprised of BP (20 percent), SOCAR (20 percent), Statoil (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).
Aug. 20
Iran wants to increase share in largest Azerbaijani gas project - minister
Iran intends to increase its stake in the largest Azerbaijani gas project Shah Deniz, Mahmoud Vaezi, minister of communications and information technology of Iran, co-chairman of the intergovernmental commission said in an exclusive interview with Trend.
He said that negotiations on this issue are already underway with the Azerbaijani side.
"The Iranian company NICO owns equity in the Shah Deniz project, and we have held talks to increase its stake in the project," said Vaezi.
NICO owns a 10 percent stake in the Shah Deniz project.
Earlier, Mehdi Mohtashami, the head of the secretariat of the Azerbaijan-Iran intergovernmental commission for cooperation in trade, economic and humanitarian spheres, told Trend in an interview that Iran also plans to acquire a stake in the TAP project, which assumes the delivery of Azerbaijani gas to Europe.
"Iran is examining various routes for supplying its gas to other countries, and TAP is one of those routes," he said. "We have already had preliminary talks with Azerbaijan and have done certain work in this regard."
As part of the implementation of the Shah Deniz project, the annual gas production volume will increase from 9 billion cubic meters (within the first phase) by additional 16 billion cubic meters in the second phase. Two offshore platforms will be installed and over 20 subsea wells will be drilled to produce additional volumes of gas within Shah Deniz-2 project.
As part of the second stage of the field's development, gas will be exported to Turkey and European markets by expanding the South Caucasus gas pipeline and the construction of Trans-Anatolian (TANAP) and Trans-Adriatic (TAP) gas pipelines.
The volume of gas produced at Shah Deniz field stood at 5.2 billion cubic meters in the first half of 2015, while the volume of condensate production at this field totaled 1.2 million metric tons (9.8 million barrels), compared to 4.75 billion cubic meters of gas and 1.12 million metric tons of condensate in the same period of 2014.
The contract for development of the Shah Deniz offshore field was signed on June 4, 1996. The field's reserve is estimated at 1.2 trillion cubic meters of gas.
The shareholders are: BP, operator (28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NICO (10 percent) and TPAO (19 percent).
TAP will transport natural gas from the giant Shah Deniz 2 field in Azerbaijan to Europe.
The approximately 870 km long pipeline will connect with the Trans Anatolian Pipeline (TANAP) at the Turkish-Greek border at Kipoi, cross Greece and Albania and the Adriatic Sea, before coming ashore in Southern Italy.
The pipeline's construction is expected to start in 2016.
TAP's initial capacity will be 10 billion cubic meters per year, expandable to 20 billion cubic meters per year.
TAP's shareholding is comprised of BP (20 percent), SOCAR (20 percent), Statoil (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).