Azerbaijan, Baku, Aug.13 / Trend E.Ismayilov /
The State Oil Company of the Azerbaijani Republic (SOCAR) is discussing with partners the issue on transit agreements through Turkey under the project on development of the Shah Deniz offshore gas field, SOCAR head Rovnag Abdullayev said on Aug13.
"We have solved most technical issues in the negotiations on transit with Turkey and only details are left for clarification. At present, we are consulting this issue with our partners under the Shah Deniz project and we will try to resolve it, Abdullayev said.
According to Abdullayev, most issues and technical indicators regarding the price of Azerbaijani gas for Turkey under the first phase of the Shah Deniz project, as well as the amount allocated for Turkey in the second phase of the project, have been resolved.
"Azerbaijan and Turkey approach gradually to a common position on formula of gas price. The main problem is the formula determining the price. Turkey has its own position in this regard and Azerbaijan its own, but we are slowly approaching each other," Abdullayev added.
At present, Azerbaijani gas is delivered to Turkey at a price of $120 per a 1,000 cubic meters. However, the gas price for consumers is approximately $380 per 1,000 cubic meters at the Turkish domestic market.
Under the contract signed with Turkey, the Shah Deniz gas price can be reviewed once a year after the commencement of supply. So, the new price is applied from Apr.15, 2008.
Under the contract, Turkey is to receive 6.6 billion cubic meters of gas from the Shah Deniz field in the first stage of development of the project. The partners will reach this volume in 2009.
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%).
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