TPAO announces planned investment in development of Azerbaijani offshore field

Oil&Gas Materials 2 June 2009 20:31 (UTC +04:00)

Azerbaijan, Baku, June 2 / Trend E. Ismaylov /

Turkish TPAO Oil Company plans to invest over $1 billion in the second phase of development of Azerbaijani offshore Shah Deniz gas field, technical director of the of the Azerbaijani office of the Turkish oil company (TPAO) Gokan Aydinoglu said on June 2.

Since 1994 the TPAO investments in the energy projects in Azerbaijan have totaled $3 billion, said Aydinoglu.

"If contracts are reached in the second phase, new investments will be put. All these are related to where and in what form the gas from Shah Deniz will be realized. If we talk about addressing these issues now, the investment will be put during 2010-2014," said Aydinoglu.

Aydinoglu said that the total amount of the planned investments in the energy projects in Azerbaijan is estimated at $1.5 to $2  billion, of which more than $1 billion will be invested in the second phase of development of Shah Deniz.

Currently, negotiations continue for gas sales within the second stage of development. "Over the past month, there is certain movement between Azerbaijan and Turkey in this regard," said Aydinoglu.

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%).

Currently, the gas is transported to Georgia and Turkey via the South Caucasus Pipeline. This year, there are plans to produce more than nine billion cubic meters of gas from the field within the first stage.

The second stage of the Shah Deniz development is scheduled to begin by 2014, it is planned to produce annually up to 20 billion cubic meters of gas within the second phase.

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