Minister: Turkey paid about $1 billion for Azerbaijani gas from Shah Deniz
Azerbaijan, Baku, Dec.24 / Trend, A. Akhundov /
Turkey paid to Azerbaijan about one billion dollars in the framework of the payments of difference in cost of the Azerbaijani gas purchased by Turkey from the first phase of development of gas field Shah Deniz, Turkish Energy Minister Taner Yildiz said in an interview with the "Sabah" newspaper.
Earlier, Azerbaijan and Turkey have agreed on the price of Azerbaijani gas in the first and second stages of the Shah Deniz project and its transit through Turkish territory. At present the parties are working on the preparation of documents that formalize the reached agreements.
Until reaching agreement, 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).
The contract reads that the price of gas from the Shah Deniz field could be reviewed after one year of the launch of supplies.
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. Reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.
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.