Since the launch of the Shah Deniz gas field in the Azerbaijani sector of the Caspian Sea, nearly 91.7 bcm of gas 23 mln tons of oil have been extracted.
“Another major contribution of Heydar Aliyev to the long-term energy policy of Azerbaijan was the agreement signed in 1996 on the Shah Deniz gas field. Although this agreement was signed at a time when the interest in gas fields in the world was low and that energy security was not of particular importance for Europe, years later, time has proven that priorities such as energy diversification and energy security were predicted with farsightedness.
Thanks to this agreement, which plays an exceptional role in ensuring energy security in Azerbaijan and Europe, our country has turned from importer of gas to exporter. The Baku-Tbilisi-Erzurum (South Caucasus Pipeline) has enabled the construction of gas export pipeline and also the construction of new routes based on this pipeline, ” – minister said.
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%).
Notably, South Caucasus gas pipeline (Baku-Tbilisi-Erzurum) was built to transport Azerbaijani gas produced in the first stage of the “Shah Deniz” field to Georgia and Turkey. The pipeline originates from the Sangachal terminal, near Baku, and to the border with Turkey runs through a single pipeline Baku-Tbilisi-Ceyhan (BTC) route, connecting the territory of Turkey to the gas distribution network in the country.
From the date of commissioning at the end of 2006, it deliveries “Shah Deniz” gas to Azerbaijan, Georgia and Turkey.