Azerbaijan, Baku, May 22/ Trend , E. Ismayilov/
Gas output of the Shah Deniz gas and condensate field will total 9 billion cubic meters per year until the start of the second phase of development, Azerbaijani industry and energy minister Natig Aliyev said.
"Earlier we planned to produce 8.6 billion cubic meters of gas per year as a part of Shah Deniz I, but the gas output will reach 9 billion cubic meters this year and this volume will be maintained until Shah Deniz II begins," Aliyev said.
He said daily condensate output from Shah Deniz is 40,000 barrels and it totals 2 million ton at an annualized pace.
Investing $20 billion in Shah Deniz II must be substantiated and there must be confidence that the investments will recompense. Therefore, gas must be exported at suitable prices, he said.
Currently, SOCAR studies the market and transit terms as a part of Shah Deniz II. "About 16 billion cubic meters of gas is the main point here."
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 output from Shah Deniz is expected to reach 9 billion cubic meters in 2009 compared to 8.6 billion cubic meters last year. The gas will be sold to Azerbaijan, Georgia and Turkey under previously signed agreements. Within the framework of Stage Two of the project after 2014, production will increase to 20 billion cubic meters
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