Investments in Azerbaijan's oil sector grew by 30%

Baku. 18 September. REPORT.AZ/ Investments in the oil sector of the economy of Azerbaijan in January-August 2014 amounted to 3.946 bln manats. Report informs referring to the State Statistics Committee, the share of the oil sector accounted for 37.8% in the structure of investment in the economy. Compared to the same period in 2013 investments in oil sector increased by 29.5%. According to observers, the growth of investment in the oil sector of Azerbaijan economy by almost 30% associated with the beginning of the active phase of the project "Shah-Deniz-2".

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

In 2018 it is expected to start gas supplies to Turkey and in 2019 - to the European market.

Annual gas production in the framework of the "Shah-Deniz-2" will be 16 bln cubic meters, of which 10 bln cubic meters will be sent to Europe, and 6 bln cubic meters - to Turkey.

After the start of production in the framework of the "Shah-Deniz-2" total gas production 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. "Shah Deniz" field reserves estimated at 1.2 trln cubic meters. The contract to develop the field "Shah Deniz" 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 "Shah Deniz" companies are BP (operator - 28,8%), Statoil (15,5%), SOCAR (16,7%), LUKoil (10%), NICO (10%) and TPAO (19%).