Investments in oil sector of Azerbaijan grew by 24%

Baku. 17 November. REPORT.AZ/ Investment in the oil sector of Azerbaijan in January-October 2014 amounted to 4.914 bln manats. Report informs referring to the State Statistical Committee, in the structure of investments in the country, 37.2% accounted for the oil sector. Compared with the same period of 2013, investments in the oil sector increased by 24.4%.

According to observers, an increase of almost a quarter of the volume of investment in the oil sector of Azerbaijan associated with the beginning of the active phase of the project "Shah-Deniz-2".

On December 17, 2013 in Baku participants in the project to develop offshore gas condensate field "Shah Deniz" announced the adoption of the final financial decision on the second stage of the project, which is estimated at 28 bln dollars. In 2018 it is expected to start gas supplies to Turkey 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 - to Turkey.

In general, after the start of production in the "Shah-Deniz-2" total gas production from the field 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. Reserves of the field "Shah Deniz" are estimated at 1.2 trillion cubic meters.

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" are companies: BP (operator - 28,8%), Statoil (15,5%), SOCAR (16,7%), LUKoil (10%), NICO (10%) and TPAO (19%).