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SOCAR head: SOCAR approaches to all projects of gas transportation to Europe with same interest

Oil&Gas Materials 25 May 2011 17:37 (UTC +04:00)
At present, the State Oil Company of Azerbaijan (SOCAR) is selecting a route of Azerbaijani gas transportation to the European market, SOCAR head Rovnag Abdullayev said on Tuesday.
SOCAR head: SOCAR approaches to all projects of gas transportation to Europe with same interest

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

At present, the State Oil Company of Azerbaijan (SOCAR) is selecting a route of Azerbaijani gas transportation to the European market, SOCAR head Rovnag Abdullayev said on Tuesday.

He said now all proposals are being prepared by participants of such projects as Nabucco, Trans Adriatic Pipeline (TAP) and Interconnector Turkey-Greece-Italy (ITGI). SOCAR approaches to all projects with the same interest and is interested in the development of each offered routes.

Particularly, SOCAR closely cooperates with Nabucco project participants, with whom work is underway on tariffs and gas pumping terms. Singing of documents between Nabucco Consortium and representatives of project member countries in June is a normal process, and SOCAR will supervise this process.

As SOCAR said earlier, most cost-effective proposals will be selected among all pipeline projects oriented to Azerbaijani gas supplies to Europe.

Partners on the development of Shah Deniz gas condensate field in Azerbaijan (which also includes SOCAR) intend to sell 10 billion cubic meters of gas on the European market.

Consortium of the Shah Deniz gas condensate field's development in Azerbaijan's sector of the Caspian Sea has requested firm gas transportation offer from all pipeline groups within the large-scale development of the field by Oct.1, 2011, British BP's report said earlier.

SOCAR and Shah Deniz partners have signed a 5 year production sharing agreement (PSA) extension from 2031 to 2036 to help long-term sale agreements with customers. Also Shah Deniz export transit organisation has been established in Ankara to work with BOTAS and the main prospective EU pipeline groups including ITGI (Interconnect Turkey-Greece-Italy) Poseidon, TAP (Trans-Adriatic Pipeline) and Nabucco.

The project has reached final stages with progress to ensure first gas deliveries in 2017.
Peak production is forecasted at 9 billion cubic meters of gas and 50,000 barrels of condensate. The Shah Deniz's gas reserves are estimated at 1.2 billion cubic meters.

The Shah Deniz's gas reserves are estimated at 1.2 billion cubic meters.

The contract to develop the offshore Shah Deniz field was signed June 4, 1996. Participants to the agreement are: BP (operator) - 25.5 percent, Statoil - 25.5 percent, NICO - 10 percent, Total - 10 percent, LukAgip - 10 percent, TPAO - 9 percent, SOCAR-10 percent.

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