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Need for Shah Deniz gas in Europe was thrice as much as transport capacity

06 June 2013 16:43 (UTC +04:00)

Baku. Ali Ahmedov – APA-Economics. “There are a series of exploration opportunities and also development opportunities in the Shah Deniz area that are not covered by Shah Deniz 2 development. There are some reservoirs that we are not going to be developing, some higher-level reservoirs that we are not going to be developing as part of Shah Deniz 2,” BP's Vice President for Shah Deniz Full Field Development, Al Cook told journalists, APA reports.

He said: “There are also some deep reservoirs. We made a discovery of a field that we call Shah Deniz deep a few years ago. That is not part of shah Deniz 2. That will be developed as part of Shah Deniz stage 3. There are additional reservoirs in the fasila and above. We also discovered potentially large volumes in the pre-fasila. All of those could be incorporated into future developments.

We are still in discussions with gas buyers. Those are continuing. They are going very well.

We are positively surprised by both the level of demand and the offers we are getting from the buyers within Europe.

Shah Deniz has 10 bcm available for Europe. When we got initial offers in, they were over 30 bcm. What we have been doing over the past two months and what we will continue to be doing during June is to high-grade those offers to the most valuable offers and the ones that best meet the needs of Shah Deniz consortium. As we do that, we will high-grade offers both in the Nabucco West and TAP corridor. And that will enable us to underpin the eventual selection of 10 bcm buyers in European countries.

It will be long-term contracts, between 20 yrs to 30 yrs.

The nature of prices depends on what our buyers want. So we are being very open to the different types of requests that our buyers make and negotiating based on both the needs of Shah Deniz obviously, but also of the expressed needs of the buyers we have in Europe.

We have got very robust proposals from both Nabucco West and TAP. They offer we received in April and at the end of April reflect the high-quality work done before that both with the Shah Deniz consortium and by the projects themselves. We are very pleased by the quality of the offers.”