Azerbaijan, Baku, June 28 / Trend S. Aliyev, E. Ismayilov /
Some $ 40 billion envisaged for gas export from the Azerbaijani Shah Deniz gas condensate field do not include the costs for the construction of the Trans-Adriatic gas pipeline, a SOCAR senior representative told journalists today.
In particular, some $ 25 billion are envisaged for holding the offshore operations on Shah Deniz, $8-9 billion - for the construction of Trans-Anatolian gas pipeline (TANAP), as well as the funds are required to expand the South Caucasus gas pipeline.
"It is still early to talk about the final figures, as the work is underway to reduce these costs," the representative said. "The total costs can be reduced as a result of the efforts of the consortium or increased due to unexpected expenses, inflation and other factors."
The representative added that SOCAR plans to become a TAP shareholder. The share and other issues will depend on the negotiation process. All these decisions will be made by late 2013. A final investment decision on Shah Deniz project is expected to be made that period.
"It is important for Azerbaijan to be a part of the TAP to control a part of the process, to receive dividends from our own gas transportation and for the reliability of the project," the representative added.
The representative stressed that the rate of return on the pipeline corresponds to the international best practice, but its amount is a commercial secret. The contracts for gas sale are planned to be concluded for a period of 25 years.
While speaking about the TANAP project implementation, the representative stressed that BP, Statoil and Total are expected to confirm their sharing in the project within the previously agreed shares (29 percent in total).
SOCAR partners on Shah Deniz gas field development project presented their preliminary intentions to acquire a stake in the TANAP project. According to preliminary data, the partners intend to distribute a 29 percent share in TANAP as follows: Statoil and BP are to receive 12 percent each and Total would get 5 percent.
TANAP project ensures gas delivery from Azerbaijani Shah Deniz gas field to Europe through Turkey. The initial capacity of the pipeline is expected to reach 16 billion cubic meters a year. About 6 billion cubic meters will be delivered to Turkey, and the rest - to Europe.