Operating expenses of Shah Deniz project exceed $1 billion

In 2020, Shah Deniz spent more than $1 billion in operating expenditure and $942 million in capital expenditure, most of which was associated with the Shah Deniz 2 project, Report informs citing BP Azerbaijan.

Operating expenses increased by $456 million, or 83.8%, while capital expenses decreased by $158 million, or 14.4%.

The agreement on exploration, development, and shared production of the promising Shah Deniz areas was signed on June 4, 1996. The production sharing agreement was ratified on October 17, 1996.

The project participants are BP (operator - 28.8%), AzSD (10%), SGC Upstream (6.7%), Petronas (15.5%), LUKoil (10%), NIKO (10%) and TPAO (19%).