Contract on Shah-Deniz transit through Turkey to be signed this year

Partners developing the Azerbaijani gas condensate Shah-Deniz and the Turkish state pipe-laying company Botas are negotiating a contract on transit of Azerbaijani gas through Turkey and purchase of the gas on the second stage of the project, head of the State Oil Company of the Azerbaijani Republic (SOCAR) Rovnag Abdullayev said, Trend reports.

He said that a memorandum was signed earlier.

Abdullayev said that the contract will be signed by the end of this year.

The maximum extraction rate at the gas field is expected to reach 9 billion cubic meters of gas and 50,000 barrels of gas condensate on the first stage and 24 billion cubic meters of gas on the second stage annually.

Shah-Deniz has approximately 1.2 trillion cubic meters of gas.

A contract on developing Shah-Deniz was signed on June 4, 1996. The participants of the deal are BP (operator) with 25.5% shares, Statoil – 25.5%, NICO – 10%, LUKOIL – 10%, TPAO – 9%, SOCAR – 10%.

6.9 billion cubic meters of gas and 1.9 million tons (14.7 million barrels) of gas condensate were extracted at Shah-Deniz in 2010. The average daily extraction rate was 19 million cubic meters of gas and 40,200 barrels of gas condensate.

6.2 billion cubic meters of gas (an average of 16.9 million cubic meters daily) and 1.7 million tons of gas condensate were extracted in 2009.