Capital expenditures on South Caucasus Gas Pipeline increase by 70 times
Baku, Azerbaijan, Nov. 23
By Emil Ismayilov - Trend:
During the first nine months of 2014, the South Caucasus Pipeline (SCP) spent $36.5 million in operating expenditure and $599 million in capital expenditure compared to $9 million in the same period of 2013, BP report on its activity in Azerbaijan as of January-September 2014 says.
For the full year, operating expenditure is expected to be $47.2 million. As a result of the ramp-up in the SCP expansion work, capital expenditure will increase to $1,244 million.
As a result of the ramp-up in the SCP expansion work, capital expenditure will increase to $1,244 million compared to $250 million in 2013, the report says.
During the first nine months of 2014, SCP's daily average throughput was 17.412 million cubic metres (615 million cubic feet) of gas or 106,017 barrels of oil equivalent per day.
The first shipment of line pipe is expected to arrive in Azerbaijan in the next few weeks, the report says.
For the full year, operating expenditure is expected to be $47.2 million.
The length of the Baku-Tbilisi-Erzurum (South Caucasus gas pipeline) is over 700 km. Gas produced from the Shah Deniz field in the Azerbaijani sector of the Caspian Sea is transported via the pipeline. The gas is supplied to Georgia and Turkey. Azerbaijan also is a buyer of gas.
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.
The SCP Co. shareholders are: BP, operator (28.8 per cent), SOCAR (16.7 per cent), Statoil (15.5 per cent), Total (10 per cent), Lukoil (10 per cent), NICO (10 per cent) and TPAO (9 per cent). These percentages include the recent purchases of equity from Statoil by BP and SOCAR. Total has entered into an agreement to sell its 10% interest in Shah Deniz to TPAO.
After the transaction is over, the share of the latter in the project will be 19 percent.