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Several contracts to be signed within Shah Deniz 2 project in 2014

Oil&Gas Materials 14 February 2014 19:41
Several service contracts will be signed in 2014 within the second phase of the Shah Deniz gas and condensate field development in the Caspian Sea’s Azerbaijani sector

Baku, Azerbaijan, Feb. 14

By Emil Ismayilov - Trend:

Several service contracts will be signed in 2014 within the second phase of the Shah Deniz gas and condensate field development in the Caspian Sea's Azerbaijani sector, according to BP's report on the activities in Azerbaijan in 2013.

The final investment decision on the second phase of the Shah Deniz field development was made in December 2013.

The cost of the second phase of the field's development, together with the expansion of the South Caucasus Pipeline which transports gas from the field to Georgia and Turkey, is estimated at $28 billion.

In particular, the contracts for construction of underwater pipelines, the establishment of sea transport and the carrying out of assembly work will be signed in 2014.

"The construction of the platform's jackets and topsides, as well as work on construction sites at the terminal (Sangachal oil terminal) will start in 2014," according to the report.

In addition, the drilling of wells from the drilling rig named after Heydar Aliyev and the Istiglal drilling rig will continue during the year.

In late June, the consortium for the development of the Azerbaijani Shah Deniz field chose the Trans Adriatic Pipeline (TAP) as a route for transporting its gas to European markets.

The gas to be produced within the second phase of this field's development will be the main source for TAP.

Two offshore platforms will be installed and over 20 subsea wells drilled as part of the Shah Deniz 2 in order to produce an additional 16 billion cubic meters of gas per year.

The forecasts show that the gas production will exceed 24 billion cubic meters per year within the second stage of the field's development.

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

The contract for development of the Shah Deniz offshore field was signed on June 4, 1996.

The agreement's participants include such companies as the State Oil Company of Azerbaijan Republic (SOCAR) with a 16.7 percent share, BP (28.8 percent), Norway's Statoil (15.5 percent), Iran's NICO (10 percent), the French Total (10 percent), Russia's Lukoil (10 percent) and Turkish TPAO (nine percent).

Translated by E.A.

Edited by S.M.

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