Baku, Ankara not fix price for gas: Turkish energy minister
Azerbaijan, Baku, Jan. 5 / Trend E. Ismayilov, R. Hafizoglu /
The Turkish energy ministry stated about the lack of completed talks with SOCAR to determine a new price for Azerbaijani gas supplied from offshore gas condensate field Shah Deniz to Turkey at this stage, the Turkish Ministry of Energy and Natural Resources official representative told Trend over phone today.
"The sides continue to discuss this issue. There is no concrete decision concerning achievement of the agreement in February. He did not rule out a possible achievement of the consensus next month," the ministry representative said.
He said it will depend on a course of the talks.
At present, Turkish media outlets spread information that Azerbaijan and Turkey will finally agree upon the price for gas in February. The price will increase up to $399 per 1,000 cubic meters from current $120 per 1,000 cubic meters.
The Turkish energy ministry took the information spread by Turkish media without enthusiasm.
The contract for 'Purchase-Sale' concluded between partners of Shah Deniz project and Turkey stipulates that the cost of Azerbaijani gas from this field can be reviewed in a year after supplies are launched, i.e. a new price will be introduced since April 15, 2008.
Under the current contract, Turkey must receive 6.6 billion cubic meters of gas from Shah Deniz in the first stage of the field's development.
Under the second phase it is planned to produce roughly 20 billion cubic meters of gas a day.
The reserves of Shah Deniz field are estimated at 1.2 trillion cubic meters.
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.