Turkey ready to up volume of gas purchased from Azerbaijan
Azerbaijan, Baku, July 18 / Trend /
Turkey is ready to increase the volume of purchases of the Azerbaijani gas from the Shah Deniz field to 8 billion cubic meters from the contracted with 6.6 billion cubic meters, a source in Azerbaijan's oil and gas industry said.
However, increases in supply can be directly connected with singing an agreement on transit transportation of the Azerbaijani gas through Turkey and increasing the cost of fuel sold at this point, experts believe.
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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