Starting stage 2 of Shah Deniz project requires pipeline and commercial conditions: SOCAR
Azerbaijan, Baku, September 16 / Trend , E. Ismailov /
Launch of the second stage of the Shah Deniz gas project is scheduled for 2016 due to absence of commercial agreement and transit conditions for the sale of gas from the offshore field located in the Azerbaijani sector of the Caspian Sea, said a senior official of SOCAR, which owns 10 percent participation share in the project.
According to him, there are also technical issues.
According to another senior representative of SOCAR, for the start of "Stage 2" it needs to solve the issue of the export pipeline.
"Without the pipeline, no one will authorize the second phase of field development," he said.
The contract to develop the offshore Shah Deniz field was signed on June 4, 1996. Participants to the agreement are: BP (operator) - 25.5 percent, Statoil Hydro - 25.5 percent, NICO - 10 percent, Total - 10 percent, LukAgip - 10 percent, TPAO - 9 percent, SOCAR - 10 percent. Gas transported by South Caucasus Pipeline to Turkey and Georgia. Within "Stage-1" of Shah Deniz project there are plans to produce 7.2 billion cubic meters of gas in 2009. The peak is expected next year - 8.6-9 billion cubic meters. Annual production within the "Stage 2" will total 20 billion cubic meters of gas.
Do you have feedback? Contact our journalist at: [email protected]