Baku, Azerbaijan, Dec. 17
By Elena Kosolapova - Trend:
The signing of the final investment decision of the Shah Deniz-2 project represents the UK's commitment to further strengthening political and economic relations with Azerbaijan, British Foreign Secretary William Hague said at a news conference in Baku on Dec. 17.
"I look forward to our bilateral relationship going from strength to strength in the coming years," he added.
Today's ceremony is an exciting opportunity, which will bring long term benefits to the UK, Azerbaijan and across Europe, and increasing the continent's energy security by providing both an additional source for gas supplies, Hague said.
This will also increase competition and reduce Europe's dependency on anyone supplier or of transit, he believes, and in time the increased competition will help keep prices affordable for households and businesses across Europe.
Hague said this deal today is particularly excellent news for the UK and BP.
"We already have over 300 British firms and over 3000 Brits working in Azerbaijan and many stand to gain from today's announcement," he added.
The signing ceremony of the final investment decision on Shah Deniz-2 project was held in Baku today.
Azerbaijani President Ilham Aliyev, his spouse Mehriban Aliyeva, the heads of several countries and governments attend the event.
Shah Deniz-2 project authorization means the transition of the project from the concept into an immediate implementation stage.
The contract to develop the offshore Shah Deniz field was signed on June 4, 1996.
Participants to the agreement are: BP (operator) - 28.8 percent, Statoil - 15.5 percent, NICO - 10 percent, Total - 10 percent, Lukoil - 10 percent, TPAO - nine percent, SOCAR - 16.7 percent.
Shah Deniz reserves are estimated at 1.2 trillion cubic meters of gas.
The cost of the second phase of development of Shah Deniz gas condensate field is estimated at $25 billion.
During the second phase of development plans are 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 ten billion to Europe.