Baku, Azerbaijan, Dec.13
By Emil Ismayilov - Trend:
The SOCAR (The State Oil Company of the Azerbaijan Republic) is interested in new investments in the economy of the European Union (EU), said the message released Dec.11 by SOCAR.
SOCAR Vice President for Investments and Marketing Elshad Nassirov made the remarks in Brussels during the meeting devoted to discussion of the Southern Gas Corridor project, SOCAR said.
At the same time, Nassirov said that the EU should provide strategic support to non-European investors, according to the message.
"Despite the fact that volumes of Azerbaijani gas are small for Europe, but its supplies can solve the problems with gas supply in consumer countries," said Nassirov, speaking of the Southern Gas Corridor.
On December 17, 2013, a final investment decision was made on the Stage 2 of the Shah Deniz offshore gas and condensate field's development. The gas produced at this field will first go to the European market (10 billion cubic meters). Around six billion cubic meters will be annually supplied to Turkey.
The gas to be produced as part of the Stage 2 of the field's development will be exported to Turkey and to the European markets by means of expanding the South Caucasus Pipeline and construction of the Trans-Anatolian Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP) that are a part of the Southern Gas Corridor project alongside with Shah Deniz-2.
The contract for development of the Shah Deniz offshore field, which has proven reserve of 1.2 trillion cubic meters of gas, was signed on June 4, 1996.
In 2013, some 9.8 billion cubic meters of gas and 2.48 million metric tons of condensate (19.6 million barrels) were produced at Shah Deniz, as compared to 7.73 billion cubic meters of gas and two million metric tons of condensate in 2012.
The share distribution among the agreement parties (after SOCAR's and BP's acquisition of Statoil's share in the project) is as follows: BP (operator) - 28.8 percent, Statoil - 15.5 percent, NICO - 10 percent, Total - 10 percent, Lukoil - 10 percent, TPAO - nine percent, and SOCAR - 16.7 percent.
Earlier, Total sold its share in the project to the Turkish company TPAO, and after completion of the deal the latter's share in the project will be 19 percent.
The Norwegian Statoil sold a 15.5 percent share in the project to the Malaysian company Petronas. The deal for purchase and sale of shares is not yet complete.
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Emil Ismayilov is Trend Agency's staff journalist, follow him on Twitter: @Emilsmail