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Azerbaijan intends to sell gas on profitable conditions: SOCAR Head

Oil&Gas Materials 23 February 2009 18:59 (UTC +04:00)

Azerbaijan, Baku, Feb. 23 / Trend , S.Aliyev / Azerbaijan intends to sell its gas within the second stage of the development of Azerbaijan gas-condensate offshore field of Shah Deniz for the advantageous price, said on Feb. 23 the President of SOCAR (State Oil Company of Azerbaijan) Rovnag Abdullaev.

"We give preference to each pipeline, consider commercial conditions of all versions in order to sell the gas for good price," Abdullaev said.

Abdullayev said earlier that SOCAR and partners on Shah Deniz hold marketing studies to conclude long-term contracts in 2009.

Azerbaijani gas within the second stage of the development of Shah Deniz will be exported under leadership of SOCAR. The gas from Shah Deniz within in first stage is exported by Norwegian StatoilHydro.  

The contract on development of off-shore Shah Deniz field was signed on 4 June 1996. Shah Deniz participating interests are: ВР (operator - 25.5%), StatoilHydro (25.5%), SOCAR (10%), LukAgip (10%), NICO (10%), Total (10%), and TPAO (9%).

The gas production on this field began in December 2006. Currently the gas is transported to Georgia and Turkey via South Caucasus Pipeline. Average daily production on Shah Deniz is 22-24 million cubic meters. This year within the first stage it is planned to obtain more than nine billion cubic meters of gas on this field.

The realization of the second stage of development of Shah Deniz is planned to begin by 2014. In total it is planned to generate 20 billion cubic meters of gas per year within the second stage.

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