SOCAR: Turkey must harmonize its legal base with new conditions

Oil&Gas Materials 14 September 2011 22:16

Azerbaijan, Baku, Sept. 14 /Trend, E.Ismayilov/

Turkey must bring its legal framework into conformity with new conditions, suggesting the transit of Azerbaijani gas via the country's territory, President of SOCAR (State Oil Company of Azerbaijan) Rovnag Abdullayev told reporters.

Previously, Turkey had not acted as a gas transit country, which requires changes to the legal framework.

He said on this eve, Azerbaijan and Turkey have started another round of talks to reach an agreement on a package of gas agreements between the two countries. This package includes the issues of transit of Azerbaijani gas via Turkey to Europe.

"Negotiations are continuing, they were launched on Sept. 13 and proceed as normal," said Abdullayev.

A transit agreement must be concluded with Turkey in order to transport Azerbaijani gas, particularly from the Shah Deniz field to Europe.

Concluding a transit agreement with Turkey is necessary to transport Azerbaijani gas, particularly from the Shah Deniz field to Europe. Gas produced under the Shah-Deniz-2 project is considered the main resource for the Southern Gas Corridor project. Under the Shah-Deniz-2 project, Azerbaijan plans to ship gas to Europe at a volume of 10 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 Hydro - 25.5 percent, NICO - 10 percent, Total - 10 percent, LukAgip - 10 percent, TPAO - 9 percent, SOCAR-10 percent.

At present, gas is transported to Georgia and Turkey via the South Caucasus gas pipeline.

The peak production forecasted at over 8.6-9 billion cubic meters. It is planned that in the second stage of field development, gas production can be brought up to 25 billion cubic meters a year.