Azerbaijan Stands Ready to Present Transit Infrastructure for Transportation of Caspian Hydrocarbons: SOCAR Head

Oil&Gas Materials 29 October 2008 18:16 (UTC +04:00)
Azerbaijan Stands Ready to Present Transit Infrastructure for Transportation of Caspian Hydrocarbons: SOCAR Head

Azerbaijan, Baku, 29 October / Trend / "After putting Baku-Tbilisi-Ceyhan (BTC) and Baku-Tbilisi-Erzurum pipelines, which were realized with the support of the USA, Azerbaijan does not experience problems with oil and gas export," SOCAR President Rovnak Abdullayev said at the meeting with the U.S. Deputy Secretary of Commerce John J. Sullivan on 29 October.  

"Today Azerbaijan is one of the players ensuring energy security of Europe, the USA will support all projects being realized in this regard," said Sullivan.  

Azerbaijan considers different routes of the transporting gas to Europe, said Abdullayev during the discussions over the question of the second phase of project Shah Deniz.

According to him, Azerbaijan will be able to present its transit infrastructure for the transportation of the hydrocarbon resources of the Caspian countries to Europe.

The sides also discussed the policy of the transit countries with respect to the question of transporting Azerbaijani gas to Europe.

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 the field was launched in December 2006. Presently, gas is transported to Georgia and Turkey via the South-Caucasus gas pipeline. Azerbaijan also purchases the gas.

Some 8.8bln cu m of gas is envisaged to be produced within Stage I per year. The gas will be supplied to Azerbaijan, Georgia and Turkey. Production will be increased up to 20bln cu m within Stage II which will be realized after 2012. At this Stage, the gas is expected to be exported to Europe.

The total BТС length is 1.768km, including the 443km section running via Azerbaijan, the 249km section via Georgia and the 1.076km via Turkey. The pumping capacity of the pipeline is over 50mln tons of oil (1mln barrels of oil per day).Pipeline construction started in April 2003 and became operational on 18 May 2005.

A total of $4bln has been spent for the construction of 1,768km long BTC pipeline, not including the fulfilment of the pipeline, financial expenses and payment of the bank rates. The credit allocated for the project totalled $2.6bln.

The BTC Co. shareholders are: BP (30.1%); AzBTC (25.00%); Chevron (8.90%); StatoilHydro (8.71%); TPAO (6.53%); ENI (5.00%); Total (5.00%), Itochu (3.40%); INPEX (2.50%), ConocoPhillips (2.50%) and Hess (2.36%).