Azerbaijan, Baku, July 15 /Trend, E.Ismayilov/
By late July, SOCAR (State Oil Company of Azerbaijan) and the Turkish Botas State Pipeline Company will resume negotiations on the transit agreement to transport Azerbaijani gas via Turkey, the head of SOCAR Rovnag Abdullayev said on Friday.
He said earlier the negotiation process became slower somewhat, but by the end of July, active negotiations and meetings will be resumed in order to achieve the final result.
Also, Abdullayev said that SOCAR with foreign partners on the development of Shah Deniz is considering expanding the Azerbaijani section of the South Caucasus gas pipeline (Baku-Tbilisi-Erzurum) or building a new branch of the pipeline.
Also, negotiations are continuing with the representatives of the pipeline consortiums, focused on delivery of Azerbaijani gas to Europe.
Concluding a transit agreement with Turkey is necessary to transport Azerbaijani gas, particularly from the Shah Deniz to Europe. Today SOCAR negotiates with potential buyers and transporters of Azerbaijani gas. However, concluding the contracts, as well as permission for the launch of the second stage of Shah Deniz development can be expected only after the conclusion of a transit agreement with Turkey.
Peak production is forecasted at over 9 billion cubic meters of gas and 50,000 barrels of condensate per day. According to forecasts, within the second phase of the field's development gas production here may be increased to 25 billion cubic meters per year.
Shah Deniz reserves are estimated at an amount of 1.2 trillion cubic meters of gas.
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.