BP: Cost of second phase of Shah Deniz estimated at $25 billion
Baku, Azerbaijan, Nov. 13
By Emin Aliyev - Trend: The cost of the second phase of development of Shah Deniz gas condensate field is estimated at $25 billion, the BP (technical operator) report on the results of three quarters of 2013 said.
According to the report, it is planned to spend some $1.7 billion in 2013 within this project.
The final investment decision on the project will be adopted in December 2013. It is planned to get the first batch of gas within the project in 2018.
Within the second phase of development it is planned to produce some 16 billion cubic meters of gas (within the first phase - 9 billion), six billion of which will be transported to Turkey and six billion to Europe.
A consortium of Azerbaijani Shah Deniz gas condensate field development announced its choice of the TAP project in late June, as a gas transportation route to the European markets. The gas which will be produced in the second phase of Shah Deniz field, is considered as the main source of the project.
TAP is designed to transport gas from the Caspian region via Greece and Albania and across the Adriatic Sea to southern Italy and then to Western Europe.
The initial capacity of the TAP pipeline will be 10 billion cubic meters per year with the possibility of expanding to 20 billion cubic meters per year.
Trans-Anatolian (TANAP) gas pipeline will be constructed for transportation of gas through Turkey's territory.
The TANAP project envisages gas transportation from the Shah Deniz field to Europe via Turkey.
Shah Deniz reserves 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 percent, Statoil - 25.5 percent, NICO - 10 percent, Total - 10 percent, Lukoil - 10 percent, TPAO - nine percent and SOCAR - 10 percent.