Baku, Azerbaijan, May 15
By Emil Ismayilov - Trend:
Capital expenditures on the South Caucasus gas pipeline (Baku-Tbilisi-Erzurum) amounted to $37 million, and operating expenditures - $12 million in January-March, 2014, according to the BP's activity report in Q1, 2014.
Regarding the expansion of the gas pipeline in 2014, it will make up $1.25 billion compared to $ 250 million in 2013, the report said.
The final investment decision was made on the second phase of the Azerbaijani Shah Deniz offshore gas and condensate field's development on December 17, 2013, which also envisages the expansion of the Sangachal oil terminal and the South Caucasus gas pipeline.
The cost of the second phase of "Shah Deniz" development together with the expansion of the South Caucasus gas pipeline which transports gas from the field to Georgia and Turkey, is estimated at $28 billion.
The report also said that it is expected to sign contracts on the construction of gas pipeline in the territory of Azerbaijan in the second quarter of 2014.The delivery of the first batch of pipes to Azerbaijan within the framework of the South Caucasus gas pipeline extension is scheduled for the end of 2014.
The planned volume of operating expenditures for 2014 via the SouthCaucasus gas pipeline amounts to $50 million, which is the same with 2013.
The shareholders of the South Caucasus Pipeline include (new share distribution after the sale and purchase transactions): 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.
In late June, the consortium for the development of Azerbaijani Shah Deniz field chose Trans Adriatic Pipeline (TAP) as a route for transporting its gas to the European markets. The gas to be produced within the second phase of this field development, will be the main source for TAP.
Two offshore platforms will be installed and more than 20 subsea wells, drilled to produce an additional 16 billion cubic meters of gas per year under the Shah-Deniz-2. Peak production output at the field where the first stage of development is projected at nine billion cubic meters. It is predicted that gas production can be brought up to 24 billion cubic meters a year during 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 in June 1996. The agreement's participants 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.
Edited by S.I.
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