SOCAR to compensate Iranian NICO company for condensate obtained from Shah Deniz field
Azerbaijan, Baku, June 3 / Trend , E.Ismaylov /
The SOCAR (State Oil Company of Azerbaijan) intends to compensate the Iranian NICO Company for the condensate received by SOCAR from Shah Deniz field, SOCAR senior official said. SOCAR intends to compensate 1.2 million barrels of condensate of the Iranian company, selling the same volume of oil from the Turkish Port of Ceyhan.
NICO Company is a participant in the development of Shah Deniz gas-condensate field in Azerbaijan. The condensate produced within the project is exported through the Baku-Tbilisi-Ceyhan pipeline. The Iranian company is not a shareholder in the pipeline, and therefore does not have an access to the pipeline. Thus, the sale of Iran's condensate share is carried out by SOCAR.
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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