Azerbaijan, Baku, June 7 / Trend /
Editor's Note: details have been added
Azerbaijan and Turkey have signed an agreement on a package of gas issues in Istanbul today.
A declaration for the transit of Azerbaijani gas through Turkey and the cost of gas within the first and second stages of development of Azerbaijan gas condensate field Shah Deniz has been signed by Azerbaijani Minister of Industry and Energy Natiq Aliyev and Turkish Minister of Energy and Natural Resources Taner Yildiz with the participation of Azerbaijani President Ilham Aliyev and Turkish Prime Minister Recep Erdogan.
SOCAR President Rovnag Abdullayev (State Oil Company of Azerbaijan) and Botas general manager (Turkish state pipeline company) Fazil Senel signed an agreement on terms and mechanisms for the sale and transit of Azerbaijani gas.
After signing SOCAR President said that today another historic step towards the development of energy cooperation between our companies and our fraternal countries has been made. The agreements signed today will create the possibility of implementing new large-scale projects, comparable to the success of realized projects of Baku-Tbilisi-Ceyhan oil pipeline and Baku-Tbilisi-Erzurum gas pipeline.
The agreement involves a change in prices for Azerbaijani gas for Turkey in the first stage of gas-condensate field Shah Deniz, gas prices under the second phase of the project, as well as the transit of Azerbaijani gas through Turkey.
The contract to develop the offshore field Shah Deniz was signed June 4, 1996. Members of the agreement are: BP (operator) - 25,5 percent, Statoil - 25,5 percent, NICO - 10 percent, Total - 10 percent, LUKOIL - 10 percent, TPAO - 9 percent, SOCAR - 10 percent. Shares of Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.
A peak production from the field within the first stage of development is projected at 8,6-9 billion cubic meters. According to the forecasts, gas production will be increased by another 16 billion cubic meters per year within the second stage of development of the field.