Compromise should be made in negotiations on cost of Azerbaijan's gas to Turkey: minister
Azerbaijan, Baku, June 13 / Trend , E.Ismayilov/
A compromise should be made in negotiations on the cost of Azerbaijani gas to Turkey in the framework of the first phase of development of gas condensate field of Shah Deniz, Azerbaijani Industry and Energy Minister Natig Aliyev said.
"Turkey has its own gas market, receiving gas from Russia, Iran, Egypt and other countries. I believe that the cost of gas shall not be less than the cost of gas in these countries", Aliyev said.
According to Aliyev, the current negotiations in this direction are underway. The main purpose of Azerbaijan is the sale gas to Turkey on world market prices for natural gas.
Azerbaijan supplies gas to Turkey at a price of $120 per 1,000 cubic meters. As stated in the contract concluded with Turkey, the cost of gas from Shah Deniz could be reviewed one year after the start of supply, i.e. the new price would be applied dating April 15, 2008.
Under the contract, Turkey is to receive 6.6 billion cubic meters of gas from the field "Shah Deniz" in the first stage of development of the project.
The contract on development of off-shore Shah Deniz field was signed on 4 June 1996. Shah Deniz participating interests are: ВР (operator - 25.5 percent), StatoilHydro (25.5 percent), SOCAR (10 percent), LukAgip (10 percent), NICO (10 percent), Total (10 percent), and TPAO (9 percent). Field's reserve was estimated at 1.2 trillion cubic metre of gas.
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