SOCAR says may operate Shah Deniz on its own after 2036
By Aynur Jafarova
Azerbaijan said it will operate the Caspian natural gas field of Shah Deniz on its own beyond 2036 if the existing contract with BP and other western partners is not extended.
"If Azerbaijan does not extend the contract with foreign partners on the Shah Deniz field after 2036, the State Oil Company of Azerbaijan will assume all responsibilities for it," SOCAR President Rovnag Abdullayev said in Baku on September 19.
Shah Deniz, estimated to contain 1.2 trillion cubic meters of gas, is operated by the London-based BP. Partners include SOCAR, Statoil, Total, Lukoil, NIKO and TPAO.
The partners last year extended the contract for five years to 2036.
Azerbaijan on September 19 signed 25-year agreements with nine European utilities to export just over 10 billion cubic meters of Shah Deniz gas to the EU starting from 2019. The buyers included Axpo Trading AG, Bulgargaz EAD, Depa, Gas Natural Fenosa, Hera Trading Srl, Shell Energy Europe, Enel SpA, EON SE and GDF Suez SA.
Final investment decision on Shah Deniz phase two is expected by the end of this year, BP Azerbaijan President Gordon Birrell said in Baku on September 19. Production will start in 2018.
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