Minister says Shah Deniz peak production to exceed projected indices

Oil&Gas Materials 4 June 2014 12:50 (UTC +04:00)

Baku, Azerbaijan, June 4

By Emil Ismayilov - Trend:

Azerbaijani Energy Minister Natig Aliyev said that the peak gas production volumes at Azerbaijan's offshore gas condensate Shah Deniz field will exceed the projected forecast.

"I think that the peak production evaluation at Shah Deniz is slightly underestimated," he said. "The peak gas production volumes will be 30-35 billion cubic meters per year," Aliyev told reporters on June 4.

Some 16 billion cubic meters of gas per year will be produced as part of the second stage of Shah Deniz development, according to the forecasts.

Some six billion cubic meters of this volume will be supplied to Turkey, while 10 billion cubic meters - to Europe. The peak production is projected at nine billion cubic meters of gas per year as part of the first stage of the field development.

The gas to be produced within Shah Deniz 2 will be the main source of supplies for the Southern Gas Corridor designed to transport gas from the Caspian region to the European markets.

On December 17, 2013, a final investment decision was made on the Stage 2 of the 'Shah Deniz' offshore gas and condensate field's development.

The gas to be produced as part of the Stage 2 of the field's development, will be exported to Turkey and to the European markets by means of expanding the South Caucasus Pipeline and construction of the TANAP and the Trans-Adriatic Pipeline (TAP).

Partners operating for Shah Deniz field's development, which has reserves of 1.2 trillion cubic meters of gas, include SOCAR with a share of 16.7 percent, British BP (28.8 percent), Norwegian Statoil (15.5 percent), Iranian NICO (10 percent), French Total (10 percent), Russian Lukoil (10 percent) and Turkish TPAO (9 percent).