Gas negotiation to continue between Azerbaijan and Turkey: SOCAR
Azerbaijan, Baku, November 24 / Trend /
Negotiations between Azerbaijan and Turkey on gas developed from the Azerbaijani Shah Deniz offshore gas and condensate field will continue until an agreement is reached between the sides, said a source at SOCAR (State Oil Company of Azerbaijan).
According to the source, a final agreement between the sides was not reached during the next round of negotiations between SOCAR and Turkish Botas State Pipeline Company, which took place in Baku on Nov. 24.
Today Azerbaijani gas to Turkey is supplied at a price of $120 per 1,000 cubic meters. However, the cost of gas for consumers in the domestic market of Turkey is around $380 per 1,000 cubic meters.
As stated in the contract with Turkey, the price of gas from Shah Deniz field can be reviewed after one year of supply, i.e., the new price will be introduced from 15 April 2008.
Under the contract, Turkey must receive 6.6 billion cubic meters of gas from the Shah Deniz field within the first stage of this project. The project partners will ensure this volume of supply later this year.
The reserves of Shah Deniz field are estimated at 1.2 trillion cubic meters.
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).