Azerbaijan, Baku, May 13 / Trend /
To launch Phase 2 of the Shah Deniz project requires certain conditions, including presence of gas sale contract and transit agreement, Azerbaijani President Ilham Aliyev said at a joint news conference with Turkish Prime Minister Recep Tayyip Erdogan in Baku on May 13 which was lively aired via the CNN Turk TV channel.
The ongoing Phase 1 of the Shah Deniz project envisages production of more than 9 billion cubic meters of gas. These volumes are sold to Azerbaijan, Georgia and Turkey. Total production in the field will be increased to 20 billion cubic meters a year under Phase 2, to be sanctioned after 2014.
The president said currently the minimum proved gas reserves of Azerbaijan comprise two trillion cubic meters and this figure can be doubled by additional drilling.
Azerbaijan directly supplies gas to Turkey and Georgia, and the volume of supply can be increased in the coming years, the president said.
"Azerbaijan makes its contribution to energy security of Europe and will continue to do so," Ilham Aliyev said.
The Azerbaijani president said Azerbaijan successfully pursues multi-faceted policy and diversification of supply in the oil and gas sector. "This policy meets our interests," the president said.
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%). Field's reserves are estimated at 1.2 trillion cubic meters of gas.
Do you have any feedback? Contact our journalist at [email protected]