$ 538 mln spent on Shah Deniz in Q1

Baku. 17 May. REPORT.AZ/ In the first quarter of 2018, Shah Deniz spent approximately $123 million in operating expenditure and about $415 million in capital expenditure (total of $ 538), the majority of which was associated with the Shah Deniz 2 project.

Report informs referring to the Q1 results of BP-Azerbaijan.

Notably, Shah Deniz field is located on 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 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.

Shah Deniz participating interests are: BP (operator – 28.8 per cent), TPAO (19 per cent), AzSD (10.0 per cent), SGC Upstream (6.7 per cent), PETRONAS (15.5 per cent), LUKOIL (10 per cent) and NICO (10 per cent).