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Price of Azerbaijani gas for Turkey to be re-considered in line with market prices: minister

Oil&Gas Materials 14 May 2009 16:41 (UTC +04:00)

Azerbaijan, Baku, May 14 / Trend /

Cost of gas which is produced from the Azebraijani gas and condensate Shah Deniz field for Turkey will be re-considered in line with the market prices for gas, Turkish Energy and Natural Resources Minister Taner Yildiz said. Increasing gas price will not affect fueld prices for consumers in Turkey.

The minister said this price was a price of gas in 2001, the contract was signed. 

Turkey buys Azerbaijani gas at $120 for 1,000 cubic meters. The contract also stipulates that the gas price can be considered a year after the supplies is launched. So, new prices (which the sides are negotiating) will be applied beginning from April 15, 2008.

Under the contract, 6.6 billion cubic meters of gas will be transported to Turkey via Baku-Tbilisi-Erzurum per year as part of the Shah Deniz-1.

Shah Deniz partners plan to achieve this volume in 2009.

The contract on Shah Deniz off-shore field development 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.

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