Azernews.Az

Caspian Pipe Coatings, co-founded by Azerbaijani state oil company Socar, will work on anti-corrosion coating and concreting of pipelines during the second stage of developing Azerbaijan`s Shah Deniz gas field in the Caspian Sea, according to the company`s head Azer Isaev.

Isaev told Trend news agency that Caspian Pipe Coatings is carrying out preparations to begin the process of coating pipes of various diameters, which are planned to be laid as part of this major project.

Two offshore platforms will be installed and more than 20 subsea wells will be drilled for the production of an additional 16 billion cubic meters of gas a year under the Shah Deniz-2 project, which is expected to start by the end of 2017.

Peak production from the field in the first stage of development is projected at 9 billion cubic meters of gas and 50,000 barrels of condensate. It is predicted that gas production can be brought up to 25 billion cubic meters a year during the second stage of field development.

Gas reserves of Shah Deniz field are estimated at 1.2 trillion cubic meters.

The contract to develop the field was signed in June 1996. The project shareholders include BP (operator) and Statoil, each holding 25.5 percent. NICO, Total, LukAgip and Socar each have a 10 percent stake, while TPAO holds 9 percent.