Investments in Azerbaijan's oil sector grew by 28%

Baku. 21 October. REPORT.AZ/ Volume of investment in the oil sector of the economy of Azerbaijan in January-September 2014 amounted to 4.406 bln manats. Report informs referring to the State Statistics Committee, investment in the economy by oil sector accounted for 37.1%. Compared to the same period in 2013 investments in oil sector increased by 28.2%.

According to observers, the growth of investment in the oil sector of economy by almost 30% is associated with the beginning of the active phase of the "Shah-Deniz-2" project.

In Baku, on December 17, 2013 project participants to develop "Shah Deniz" offshore gas condensate field announced the adoption of the final financial decision under the second phase of the project, which is estimated at 28 bln dollars. Gas production in the framework of the "Shah-Deniz-2" is scheduled for 2018.

It is expected to start gas supplies to Turkey In 2018, to the European market - in 2019. Annual volume of gas in the "Shah-Deniz-2" will be 16 bln cubic meters, of which 10 bln cubic meters will be transfered to Europe, and 6 bln cubic meters - to Turkey.

Total gas production from the field "Shah-Deniz-2" will be 25 bln cubic meters. Of these, 9 bln cubic meters of gas will be produced in the first stage of the project and 16 bln cubic meters - in the second. Reserves of the field "Shah Deniz" is estimated at 1.2 trln cubic meters.

The contract to develop the "Shah Deniz" field was signed in Baku on June 4, 1996 and ratified by Parliament on October 17 of the same year.

Parties to the agreement on production sharing of "Shah Deniz" are companies: BP (operator - 28,8%), Statoil (15,5%), SOCAR (16,7%), LUKoil (10%), NICO (10%) and TPAO (19%).