$ 2.648 bln. spent on Shah Deniz project this year

Baku. 20 November. REPORT.AZ/ During January-September 2017, Shah Deniz spent $ 2.488 billion on Shah Deniz gas condensate field development project in the Azerbaijani sector of the Caspian Sea.

Report informs referring to the report of BP-Azerbaijan, approximately $368 million in operating expenditure and about $2.28 billion in capital expenditure, the majority of which was associated with the Shah Deniz Stage 2 project.

During the first 9 months of this year, Shah Deniz operations expenditures have increased by 10% compared to the same period last year, while the capital expenditure has dropped by 17.7%.

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 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%).