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Price of Gas Produced from Azerbaijani Condensate Field May Be Reviewed

Oil&Gas Materials 26 March 2007 16:31 (UTC +04:00)

Azerbaijan, Baku/ Trend corr S. Aliyev / The price of gas produced from the Azerbaijani offshore gas condensate field of Shah Deniz based on the contract "Purchase Sale" may be reviewed after 1 October, 2007, a source in the Azerbaijani Government has informed Trend today.

At present, according to the existing contract, the gas price for Azerbaijan has been indicated at $58 per 1,000 cu.m of gas, $63 per 1,000 cu. m for Georgia, and $80-120 per 1,000 cu. m of gas for Turkey.

"However, since the completion date of the contract, prices on international gas prices have significantly increased. In particular, Georgia is currently importing Russian gas at the price of $235 per 1,000 cu.m," admitted the Government source.

According to the Government of the Country, certain companies involved inthe project of the development of the Azerbaijani Deposit of Shah Deniz, are reconsidering the current prices. "However, this issue will be settled during the negotiations," concluded the Government source.

The contract on the development of Shah Deniz field was signed in 1996 in Baku. The parties involved in the project are: BP operator - 25.5%, Statoil 25.5%, SOCAR, LUKAgip, NICO 10% and TOTAL 10% and TPAO 9%.

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