$ 1.9 bln spent on Shah Deniz project in first half 2017

Baku. 17 August. REPORT.AZ/ During January - June this year, the Shah Deniz consortium has invested $ 1.889 billion in project activity.

Report informs, the field operator BP-Azerbaijan informed. In the first six months of 2017, Shah Deniz spent approximately $249 million in operating expenditure and about $1.64 billion in capital expenditure, the majority of which was associated with the Shah Deniz Stage 2 project.

In the first half of this year, the cost of operating expenses on the project increased by 10.7% compared to the same period of 2016 and volume of capital expenditures decreased by 12%.

It was noted that the vast majority of capital expenditure relate to the Shah Deniz Stage 2 project.

Notably, Shah Deniz field is located on the Caspian Sea shelf, 70 km 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 cum. 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%).