21:00, 26 January 2013

Azerbaijan prolonged the term of agreement on development of “Shakh-Deniz” deposit

SOCAR state oil company of Azerbaijan prolonged the term of a contract on development of condensate deposit “Shakh-Deniz” till 2036, Vice-president of SOCAR Elshad Nasirov informed.

It should be reminded that the contract on “Shakh-Deniz” project was signed in June of 1996. The first gas within the project “Stage-1” from the deposit was produced in November of 2006. Maximum power of the project “Stage-1” makes about 8,6 billion dollars a year.

In April of 2010 Azerbaijan deferred the start of development of deposit “Shakh-Deniz-2” on the Caspian sea till 2017. The reason for delay was disagreement with Turkey on the price of gas and the absence of decision on construction of Nabucco gas pipeline.

Elshad Nasirov informed about prolongation of the contract and agreement on division of production of development of condensate deposit “Shakh-Deniz” during World Economic Forum in Davos on January, 25.

Elshad Nasirov also said that “green light” was given to construction of the pipeline for the second stage of the project, “Trend” reports.