Major events in Caspian countries' oil and gas industry for last week (Dec. 16-20)
BP announces final investment decision on Shah Deniz-2 project
The consortium for the development of Azerbaijani Shah Deniz gas condensate field announced the signing of a Final Investment Decision on the second phase of the field's development. The Shah Deniz-2 project authorization means the transition of the project from the concept into an immediate implementation stage.
TAP confirms adoption of resolution on construction of pipeline
TAP confirmed adoption of the resolution on construction of the Trans Adriatic Pipeline (TAP) following the announcement of the Shah Deniz Consortium that it made the Final Investment Decision on the Shah Deniz Stage II project, according to the project's message.
The Trans Adriatic Pipeline's shareholders (SOCAR, Statoil, BP, Fluxys, Total, E.ON and Axpo) confirmed on Dec. 17 that they passed the "Resolution to Construct" within the framework of the development and realization of the Trans Adriatic Pipeline project.
Shah Deniz PSA extended up to 2048, SOCAR and BP increase their stake in project
The State Oil Company of the Azerbaijan Republic and the Shah Deniz partners agreed to extend the Shah Deniz Production Sharing Agreement up to 2048, and the equity of SOCAR and BP (the project's operator) in the project will be increased to 16.7 and 28.8 percent respectively, according to BP's message.
Statoil announces cost of deal on sale of assets in Azerbaijan
Norway's Statoil sold a 10 percent stake in the Shah Deniz project and the South Caucasus gas pipeline to the State Oil Company of Azerbaijan (SOCAR) and British BP for $1.45 billion, according to a message posted on the Statoil website.
The deal will come into force on Jan. 1, 2014, according to the message.
Statoil CEO Helge Lund said that the deal meets Statoil's strategy of optimizing the investment portfolio, according to the message. As a result of the sale of the Statoil's assets in Azerbaijan, SOCAR and BP acquired 6.7 percent and 3.3 percent stakes respectively in the project of development of Shah Deniz gas condensate field and the South Caucasus gas pipeline.
Two major contracts signed as part of Shah Deniz-2
Two major contracts were signed with Tekfen-Azfen and AMEC-Tekfen-Azfen (ATA) consortiums for conducting construction works as part of the second stage of development of the Shah Deniz gas condensate field, according to a message from BP Azerbaijan. The value of the first contract is $998 million, and the value of the second contract is $974 million.
The work under first contract is to commence in January 2014 with completion expected in 2018. In particular, the scope of work for this contract includes construction of the main gas and condensate processing facilities at the Sangachal terminal, gas, condensate and MEG pipeline installation from the offshore pipeline beach landing site to the terminal facilities and brownfield works in the existing Sangachal Terminal.
The second contract is for the fabrication, load out and offshore hook-up and commissioning of the topsides units of the two Stage 2 platforms - Production and Risers platform (SDB-PR) and Quarters and Utilities platform (SDB-QU).
SOCAR acquires 66 percent stake in Greece's gas transmission network operator
The State Oil Company of Azerbaijan Republic (SOCAR) signed agreements with Hellenic Republic Asset Development Fund (HRADF) and the "Petroleum" company on acquiring a 66 percent stake in DESFA (Greece's gas transmission network operator).
Following the international tender, earlier announced by HRADF, the parties signed agreement on purchase and sale of stakes and an agreement on shareholders.
The signed documents will come into force following their approval by the director generals of the European Commission on Energy and Antimonopoly Policy, according to the message.