...

Ambassador: Supplying Shah Deniz-2 gas to world markets to be another success of Turkey and Azerbaijan

Oil&Gas Materials 25 October 2010 17:20 (UTC +04:00)

Azerbaijan, Baku, Oct. 25 / Trend E.Ismayilov /

A joint energy commission will be created under the Azerbaijan -Turkey agreement on strategic cooperation and mutual assistance, which was signed in August, Turkish Ambassador to Azerbaijan Hulusi Kilic said in an interview with Trend.

He said the commission will be established to further develop the energy cooperation between the two countries.

The Baku-Tbilisi-Ceyhan oil pipeline and the Baku-Tbilisi-Erzurum gas pipeline play an important role in ensuring the energy security of Azerbaijan and Turkey, Kilic said.

"Azerbaijan delivers large gas reserves to the world market through Turkey. These supplies are also important from a view of international energy security and energy security of Europe," Kilic said.

Kilic said the negotiations are underway to choose a direction and buyers for the transportation of the Azerbaijani gas via Turkey.

"The supply of the Azerbaijani gas from the second phase of development of the Shah Deniz field to the European market will be another success of the Azerbaijan-Turkey cooperation, as well as contribute to the further development of Azerbaijan," Kilic said.

Azerbaijan and Turkey signed the agreement on the cost of gas, both within the first and the second phases of development of the Shah Deniz field, as well as the conditions for the Azerbaijani gas transit via Turkey.

The contract to develop Shah Deniz was signed in June 1996. Participants are: BP (operator) - 25.5 percent; Statoil - 25.5 percent; NICO - 10 percent; Total - 10 percent; LukAgip - 10 percent; TPAO - 9 percent; and, SOCAR - 10 percent.

Gas is transported to Georgia and Turkey through the South Caucasus gas pipeline.

This year the field will produce 7.84 billion cubic meters of gas. Peak production is forecast at over 8.6-9 billion cubic meters. Gas production may be brought up to 25 billion cubic meters per year under the second phase of development.

Do you have any feedback? Contact our journalist at: [email protected]

Tags:
Latest

Latest