BP, its partners invested over $15 billion in Azerbaijan’s biggest gas project (UPDATE 2)
Details added (first version posted on 17:20)
Baku, Azerbaijan, Mar. 29
As of today, BP and its partners invested more than $15 billion in the Shah Deniz Stage 2 project in Azerbaijan and Georgia, where BP operates as an operator, Gordon Birrell, former BP regional president for Azerbaijan, Georgia and Turkey, told reporters in Baku Mar. 29.
BP expects that the final expenditures for the Shah Deniz Stage 2 project will be lower than those specified in the final investment decision. The cost of the Shah Deniz Stage 2 is estimated at $28 billion.
It is too early to talk about a specific amount of expenditures, as there are still a number of expensive works, noted Birrell, adding that however, the company expects the project to be cheaper than planned and to be ahead of both the technical and investment schedules.
The Shah Deniz Stage 2 envisages the drilling of 26 subsea wells, construction of two platforms, underwater pipelines for gas and condensate, expansion of the oil and gas terminal in Sangachal settlement, construction of two gas compressor stations and the connection of this infrastructure to the South Caucasus gas pipeline.
The gas, produced within the second stage of Shah Deniz field’s development, will be exported to Turkey and European markets through expansion of the South Caucasus Pipeline and the construction of the Trans Anatolian Natural Gas Pipeline (TANAP) and the Trans Adriatic Pipeline (TAP).
Shah Deniz Stage 2 will add a further 16 billion cubic meters per year of gas production to the approximately 9 billion cubic meters per year produced by Shah Deniz Stage 1.
A contract for development of the Shah Deniz offshore field was signed on June 4, 1996.
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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