BAKU, Azerbaijan, Nov.5
By Leman Zeynalova – Trend:
In the first three quarters of 2021, Shah Deniz spent $1.57 billion in operating expenditure and around $524 million in capital expenditure, the majority of which was associated with the Shah Deniz 2 project, Trend reports with reference to bp.
This is while $620 million in operating expenditure and $719 million in capital expenditure were spent on Shah Deniz in the same period in 2020. The operating expenditure on Shah Deniz grew by 153 percent, while capital expenditure fell by 27.1 percent.
This year, Shah Deniz celebrates its 25th anniversary since the signing of the Shah Deniz Production Sharing Agreement (PSA). The PSA was signed on 4 June 1996 between SOCAR and a consortium of foreign companies. It was ratified by the Milli Majlis and became effective on 17 October the same year. The project is the second after ACG largest foreign direct investment made in Azerbaijan and as such it has further strengthened the country’s economy. The Shah Deniz 25th anniversary marks an important milestone in the new history of Azerbaijan’s oil and gas industry.
Shah Deniz participating interests are: bp (operator – 28.8 percent), TPAO (19 percent), PETRONAS (15.5 percent), AzSD (10 percent), LUKOIL (10 percent), NICO (10 percent) and SGC Upstream (6.7 percent).
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