Azerbaijan, Baku, 8 July / Trend corr S.Agayeva/ Russia's gas monopolist Gazprom will commence negotiations on the terms of gas purchase from Azerbaijan in near future, Russian Ambassador to Azerbaijan Vasiliy Istratov said on 8 July.
"Entrepreneurs in Azerbaijan and Russia will determine terms for purchase of Azerbaijani gas," Istratov said.
"The issue was discussed between Azerbaijani and Russian Presidents during President Medvedev's official visit to Baku. Presidents backed continuation of negotiations," Ambassador said.
Previously, Gazprom head Alexei Miller said "We are ready to purchase gas on the basis of market pricing and in possible maximum volumes from Azerbaijan and other countries in which Gazprom operates." The proposal to purchase Azerbaijani gas at market prices on the basis of a long-term agreement was made at the meeting between Miller and Azerbaijani President Ilham Aliyev at the beginning of June 2008 during Gazprom delegation's visit to Azerbaijan.
Gas may be transported to Europe and other countries within development of a large gas and condensate Shah Deniz field located in Azerbaijan's sector of the Caspian Sea.
The contract on development of off-shore Shah Deniz field was signed on 4 June 1996. The sides to the contract are ВР (operator - 25.5%), Statoil (25.5%), SOCAR (10%), LukAgip (10%), NICO (10%), Total (10%), and TPAO (9%).
Gas production in Shah Deniz commenced in December 2006. The gas is transported to Georgia and Turkey via South Caucasus gas pipeline. Azerbaijan also purchased the gas.
Some 8.6bln cu m of gas is envisaged to be produced within Stage I per year. The gas will be supplied to Azerbaijan, Georgia and Turkey. The production will be increased up to 20bln cu m within Stage II which will commence to be realized after 2012.
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