BP’s Azerbaijan Gas Project Will Cost $18 Billion
BP has revealed the cost of its contracts in the second phase of its development of the offshore Shah Deniz gas and condensate field in Azerbaijan, and the expansion of the South Caucasus pipeline. A message from the company stated that the contracts are worth approximately $18 billion. The project is on schedule and is about 82 percent complete.
The company organized a press tour Sept. 22 for journalists to Azfen-Tekfen-Amec consortium’s (ATA) production site, where the assembly of topside modules of the platform for the Shah Deniz 2 project is being carried out, Trend reports.
The project’s implementation continues successfully and currently, the work on the project has been completed by 82 percent and is being carried out in accordance with the schedule.
The work on the expansion of the Sangachal oil and gas terminal also continues according to the plan, said BP message.
The pipe-lay barge Israfil Huseynov completed the complex installation of the first Shah Deniz flowline from the North Flank cluster to the platform location, according to BP. The barge is now installing the other flowline before it heads to the West Flank to install the two flowlines there.
Following the float-out of the subsea construction vessel Khankendi of the dry dock, it recently received the main crane for installation. The vessel is now getting ready for commissioning and certification. Once completed, this new vessel will be deployed to the Shah Deniz 2 area for the construction of the subsea structures.
The contract for development of the Shah Deniz offshore field was signed on June 4, 1996.
The shareholders in the contract are BP (operator – 28.8 percent), AzSD (10 percent), SGC Upstream (6.7 percent), Petronas (15.5 percent), Lukoil (10 percent), NIOC (10 percent) and TPAO (19 percent).
As part of the Stage 2 of development of the Shah Deniz field, the gas will be exported to Turkey and European markets by expanding the South Caucasus Pipeline and the construction of Trans-Anatolian Natural Gas Pipeline and the Trans-Adriatic Pipeline.
The reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas and 240 million tons of condensate.
Gas output will increase from 9 billion cubic meters to 16 billion cubic meters per year within the implementation of the Shah Deniz 2 project.
Source: News.az
