$1.7 bln to be spent to Shah Deniz Stage 2 this year

$1.7 bln to be spent to Shah Deniz Stage 2 this year
# 14 November 2013 13:07 (UTC +04:00)

This Stage 2 development of the Shah Deniz field, which lies some 70 kilometres offshore in the Caspian, is expected to include two new bridge-linked production platforms; 26 subsea wells to be drilled with two semi-submersible rigs; 500km of subsea pipelines built at up to 550m of water depth; a 16 bcma upgrade for the South Caucasus Pipeline (SCP), which will be expanded with a new 48’’ diameter pipeline in Azerbaijan and two compression stations in Georgia; and expansion of the Sangachal terminal.

In Turkey, Shah Deniz gas will be transported through a new Trans Anatolian Pipeline (TANAP) which is set to become a key part of the Southern Gas Corridor linking the extensive gas resources of the Caspian Sea to Turkish and EU markets. Sales agreements were signed with BOTAS in 2011 to sell 6 billion cubic metres a year of Shah Deniz Stage 2 gas in Turkey.

The Shah Deniz consortium announced on 28 June that it had selected the Trans Adriatic Pipeline (TAP) to deliver up to 10 billion cubic metres a year of Shah Deniz Stage 2 gas to customers in Greece, Italy and potentially in Southeast Europe.

On 19 September, 25-year sales agreements were concluded with nine companies for just over 10 billion cubic metres a year of Shah Deniz Stage 2 gas for purchasing the gas in Italy, Greece and Bulgaria. In total 16 billion cubic metres a year of Shah Deniz Stage 2 gas will be delivered through more than 3,500 kilometres of pipelines through Azerbaijan, Georgia, Turkey, Greece, Bulgaria, Albania and under the Adriatic Sea to Italy.

Based on the overall progress to date, the project is planning to spend circa $1.7 billion in 2013. A final investment decision for the project is expected in December 2013 and Shah Deniz Stage 2 first production is planned for 2018.

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THE OPERATION IS BEING PERFORMED