Azerbaijan invested $3.73bn in Shah Deniz project

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$3.73 bln have been invested as per date on financing of Azerbaijan’s share in Shah Deniz gas condensate field development project (Stage 1 and Stage 2).

Report was informed in the “South Gas Corridor” CJSC. According to the Shah Deniz 2 project, as of late February, total amount of funds spent by partners was $ 17.4 bln.

Total cost of the Shah Deniz-2 project, which envisages transportation of extracted gas to Turkey and Europe, estimated at $ 23.9 bln.

Notably, “Southern Gas Corridor” CJSC was established by Azerbaijani President`s decree “On some events connected with the second stage of the Shah Deniz gas condensate and other projects related to establishment of the “Southern Gas Corridor” dated February 25, 2014. It is a closed joint stock company, 51% of shares as the state property owned by the Ministry of Economy and 49% SOCAR.

Acting as an issuer, “Southern Gas Corridor” CJSC, 100% stake of which directly or indirectly owned by Azerbaijan, represents interests of Azerbaijan in the Southern Gas Corridor (SGC) project which is under construction at present and supported by the European Union with length of over 3 500 km to supply natural gas from Azerbaijan to Europe.

Notably, Shah Deniz field is located on Caspian Sea shelf, 70km south-east from Baku coast with depth of water changing between 50-500 meters. The field’s estimated natural gas deposits are about 1.2 trillion cubic meters. It is one of largest gas-condensate deposits in the world.

The agreement on ‘Shah Deniz’ perspective area exploration, development and production sharing was signed June 4, 1996. ‘Shah Deniz’ production sharing agreement was ratified on October 17, 1996.

Participants to the agreement are: BP (operator – 28.8%), AzSD (10%), SGC Upstream (6.7%), Petronas (15,5%), LUKoil (10%), NICO (10%) and TPAO (19%).

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