Stage 1 construction under the Shah Deniz gas and condensate development project is currently 63% complete overall. The project has progressed according to schedule to meet the target of delivering first gas to the market before winter 2006, the AIOC told Trend
During the first half the ProjectвЂ™s overall Stage 1 capital expenditure was $588 million. Our forecast is that by the end of the year we will spend $1318 million against the $1269 million capex plan for 2005 due to increased project, yard upgrade costs and currency exchange rate movements. The overall project cost estimate remains unchanged.
Preparations are underway to start drilling a fourth pre-drill production well (SDA-4) in August. The well is designed to allow us to meet the requirements of an agreement with the Azerbaijan Government for additional sales of an aggregate of some 3 billion cubic meters of natural gas over the first three years after commencement of deliveries from Shah Deniz in 2006.
After SDA-4 the Shah Deniz project is planning to drill another appraisal well вЂ" SDX-4, which we expect to spud in the early new year.
The overall SCP project is about 70% complete, including strung 398 km of pipe in Azerbaijan and 222 km in Georgia, Welded 330 km in Azerbaijan and 197km in Georgia, backfilled 310 km in Azerbaijan and 120 km in Georgia
In addition, the Turkish offtake facility is 72% complete and the Georgian offtake is 56% complete.