Azerbaijan, Baku, April 7 /Trend, E.Ismaylov/
It needs to sign four regulations for the normative legalization of an agreement between Azerbaijan and Turkey in the gas sector, the head of SOCAR (State Oil Company of Azerbaijan) Rovnag Abdullayev said.
According to him, the sides have reached an agreement on the key issues in the gas sphere. Now experts from SOCAR and Turkish Botas State Pipeline Company prepare documents required for normative legalization of the agreements.
"This is a large group of documents - about four agreements, including the interstate, between companies, transit. They are prepared," said Abdullayev.
According to him, the previously existing uncertainty between the sides was eliminated, and the sides found a solution that meets the common interests of Azerbaijan and Turkey.
Azerbaijani gas is supplied to Turkey at $120 per 1,000 cubic meters. However, the cost of gas for consumers on Turkey's domestic market is more than $300 per 1,000 cubic meters (data from the official website of the Turkish company Botas).
Turkey has repeatedly stated its readiness to pay the difference that arises in the case of an agreement between the parties on a new gas price in the first stage. Gas sales to Turkey under the second phase of Shah Deniz will be carried out already at the rate of the new price.
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. Shah Deniz reserves 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, and SOCAR - 10 percent.