Azernews.Az

By Aynur Jafarova

Selection of the main contractors within the second stage of the development of the giant Shah Deniz gas condensate field in the Azerbaijani sector of the Caspian Sea is nearing completion.

A source in the oil and gas market told Trend news agency that the final decisions will be made in early 2014 and then a process for signing contracts with major contractors will start. These contractors will be involved in construction works.

"First of all it concerns the contractors, who will be engaged in the platform's construction, establishment of the necessary underwater infrastructures and others. The project is very big and contractors will be required to prepare for the beginning of constructions," the source said.

The constructions within the second stage of Shah Deniz will start in July 2014.

Plans for the project include building of two new offshore platforms, connected to each other via a bridge, drilling of 26 underwater wells with two semi-submersible drilling rigs, construction of 500 kilometers of underwater pipelines at a depth of 550 meters, creation of additional opportunities for export in Azerbaijan and Georgia and extension of Sangachal terminal.

Gas which will be produced within the second stage of Azerbaijan's Shah Deniz field development will be the main source for the Southern Gas Corridor, which envisages the transportation of Caspian gas to European markets.

In late June, the Shah Deniz consortium announced the selection of TAP as the main route for transporting its gas to Europe. Another pipeline which was vying for Azerbaijani gas transportation to Europe was Nabucco West.

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, NICO and TPAO. Last year, the partners extended the Shah Deniz contract for another five years, till 2036.

BP said in its recent report that during the first nine months of 2013, the Shah Deniz field produced about 7.3 billion cubic meters of gas and 1.85 million tons (about 14.6 million barrels) of condensate.

Since the start of Shah Deniz production in late 2006 till the end of the third quarter of 2013, about 44.8 billion standard cubic meters of Shah Deniz gas, and about 94.6 million barrels (11.9 million tons) of Shah Deniz condensate was exported to the markets, the report said.