$ 948 mln spent on "Shah Deniz" project in Q 1

Baku. 10 May. REPORT.AZ/ During the quarter I of 2017, "Shah Deniz" consortium has spent $ 948 mln on project activities.

Report informs referring to "BP-Azerbaijan", approximately $113 million were - operating expenditure and about $835 million - capital expenditure, majority of which was associated with the Shah Deniz-2 (Stage 2) project.

In the first quarter of this year project costs decreased by 9%.

The majority of capital expenditures refers 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%).