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Over $ 2 billion to be allocated for Shah Deniz Stage 2

Oil&Gas Materials 1 March 2013 17:04 (UTC +04:00)

Azerbaijan, Baku, Mar.1 / Trend, E. Ismayilov /

The Shah Deniz consortium is planning to spend circa $2.3bn in 2013 within Shah Deniz Stage 2 in the Azerbaijani sector of the Caspian Sea, a BP report on 2012 results says.

Following the final European route selection process (TAP or Nabucco West), the Shah Deniz Final Investment Decision is expected later this year, according to the report.

Shah Deniz Stage 2 is projected to be ready for First Production in 2018, according to the report.

The Shah Deniz Stage 2 project is expected to add a further 16 billion cubic meters per year (bcma) of gas production to the approximately 9 bcma from Shah Deniz Stage 1, through including two new bridge-linked production platforms and drilling over 20 subsea wells.

Expansion of the South Caucasus Pipeline is planned as well.

Reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.

The contract to develop the offshore Shah Deniz field was signed on June 4, 1996. Participants to the agreement are: BP (operator) - 25.5 per cent, Statoil - 25.5 per cent, NICO - 10 per cent, Total - 10 per cent, Lukoil - 10 per cent, TPAO - nine per cent and SOCAR - 10 per cent.

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