CapEx down on South Caucasus gas pipeline
Baku, Azerbaijan, Nov. 18
By Maksim Tsurkov - Trend:
The capital expenditures on the South Caucasus gas pipeline (Baku-Tbilisi-Erzurum) totaled around $764 million in the three quarters of 2016, compared to $835 million in the same period of 2015, the BP report on activity in Azerbaijan for the three quarters of 2016 said Nov. 18.
The South Caucasus Pipeline spent about $21 million in operating expenditures in the reporting period compared to $32 million in the same period of 2015.
Capital expenditures of the pipeline totaled $1.1 billion in 2015, operating expenditures - nearly $47.5 million.
The pipeline's daily average throughput was 20 million cubic meters of gas in the three quarters of 2016, according to the report.
The length of the Baku-Tbilisi-Erzurum gas pipeline exceeds 700 kilometers. The gas produced from the Shah Deniz gas and condensate field in the Azerbaijani sector of the Caspian Sea is transported via this pipeline. Gas is delivered to Georgia and Turkey. At the same time, Azerbaijan is also a gas buyer.
The contract for development of the Shah Deniz offshore field was signed on June 4, 1996. The field's reserve is estimated at 1.2 trillion cubic meters of gas.
The shareholders in the contract are: BP, operator (28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NIOC (10 percent) and TPAO (19 percent).
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