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Iran offers $1.7 billion investment for Azerbaijanâ€™s gas sector

12 January 2009 10:11 (UTC +04:00)

"We are interested in having at least a 10 percent share of the development of the second phase of this field," Hossein Noghrehkar-Shirazi, deputy oil minister for international affairs, told Mehr News Agency.
"Iran has given a $1.7 billion proposal to Azeri officials for the development of a part of the second phase of the Shah-Deniz field," he was quoted as saying.
Azerbaijan hosts some of the worldâ€™s biggest oil and gas developments. It sells output to the domestic market, and neighbouring Georgia and Turkey via the Baku-Tbilisi-Erzerum pipeline.
Noghrehkar-Shirazi said Iran, the worldâ€™s fourth-largest oil producer, also had a 10 percent share in developing Phase 1 of Shah-Deniz.
The second, $10-billion-phase has been estimated to come on stream between 2011 and 2012, but Noghrehkar-Shirazi suggested he expected it would happen later.
"The second phase of the Shah-Deniz field will go on stream in 2013 and 2014 and currently a lot of countries have asked to buy gas from the Shah-Deniz consortium and Iran has been placed in the list of those who are interested," he said.
Many countries, including Iran, Russia and Nabucco project parties have placed orders with Azerbaijan to buy natural gas from Shah Deniz Phase 2.
Shah Deniz Phase 1 gas is being pumped via Baku-Tbilisi-Erzurum gas pipeline from Azerbaijan to Turkey.
Shah Deniz participating interests are: UKâ€™s BP (operator â€“ 25.5%), Norwayâ€™s StatoilHydro (25.5%), Azerbaijanâ€™s SOCAR (10%), Russiaâ€™s LUKOIL (10%), Iranâ€™s NICO (10%), Franceâ€™s Total (10%), and Turkeyâ€™s TPAO (9%).