SOCAR head: Gas contracts on Shah Deniz 2 to be signed in 2011
Azerbaijan, Baku, Nov. 13 / Trend E. Ismayilov /
Partners in developing Azerbaijan's major gas condensate field Shah Deniz will sign contracts for gas sale from the second phase of the project development in mid-2011, Rovnag Abdullayev, head of the State Oil Company of Azerbaijan (SOCAR) said.
Aas part of the second stage of the field's development, contracts are being prepared with the Turkish side on gas transit and on sale of 6 billion cubic meters of fuel a year, Abdullayev said.
"Furthermore, discussions are underway with European buyers to sell 10 billion cubic meters of gas a year," Abdullayev said.
The contract to develop Shah Deniz was signed in June 1996. Participants are: BP (operator) with a stake of 25.5 percent; Statoil with 25.5 percent; NICO with 10 percent; Total with 10 percent; LukAgip with 10 percent; TPAO with 9 percent; and, SOCAR with 10 percent.
The consortium developing the Shah Deniz gas condensate field in the Azerbaijani section of the Caspian Sea will announce the final gas buyers within the second stage of the field's development in the first quarter of next year. The buyers will be selected based on a short list of candidates. Participants of the Nabucco gas pipeline project, which also includes RWE, hope to receive significant amounts of gas from Azerbaijan to fill the pipeline.
According to forecasts, gas production may reach 25 billion cubic meters per year under the second phase of development. First gas will be received in late 2016-early 2017.