Minister: Implementation of Shah Deniz project to allow Georgia to receive extra gas
Georgia, Tbilisi, July 17 /Trend N.Kirtzkhalia /
Implementation of the second stage of development of Shah Deniz gas condensate field in the Azerbaijani sector of the Caspian Sea will lead not only to economic growth in Georgia, but also to additional volumes of gas, received for its transit, Georgian Minister of Energy and Natural Resources Kakha Kaladze said.
According to him, the consortium of development of Shah Deniz field will spend an additional one billion dollars, within the framework of implementation of the project for work on the territory of Georgia. The work will be performed in Ninotsminda. As a result of the work on the South Caucasus gas pipeline it will be possible to transport an additional 16 billion cubic meters of gas annualy.
Plans for the project include the construction of two new offshore platforms, connected to each other by a bridge, drilling 26 underwater wells with the help of two semi-submersible drilling rigs; construction of 500 kilometers of underwater pipelines at a depth of 550 meters, creation of additional opportunities for export in Azerbaijan and Georgia and expansion of the Sangachal terminal.
Reserves of Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.
The contract for development of the offshore Shah Deniz field was signed in June 1996. Participants to the agreement are BP (operator) - 25.5 percent, Statoil - 25,5 percent, NICO - 10 percent, Total - 10 percent, Lukoil - 10 percent, TPAO - nine percent, SOCAR - 10 percent.
The gas produced in the second stage of field's development will be exported to Turkey (six billion cubic meters) and Europe (10 billion cubic meters).