Shah Deniz Final Investment Decision To Be Made In Baku

16 December, 2013
On December 17, 2013, Shah Deniz -2 will officially sign the final investment decision (FID) in Baku.

The investment decision is crucial for the future of the project, it is seen as one of the alternative routes to supply gas to Europe and ensure energy security of Europe the as well as of the region.

The Shah Deniz -2 development is expected to produce additional 16 billion cubic meters (bcm) of gas. The South Caucasus Pipeline will transport natural gas to Turkey and to Europe. As a result the project will bring additional benefits to Georgia.

Georgian Delegation will attend the official signing ceremony in Baku. The Prime Minister of Georgia, Irakli Garibashvili will also pay a visit to Baku and meet Azerbaijani senior officials.

The reserves of the Shah Deniz field are estimated at 1.2 trillion cubic metres of gas. The cost of the Shah Deniz stage-2 is USD 25 billion. Shah Deniz -2 is expected to feed 16 bcm of gas per year to Europe, with 10 bcm earmarked for Europe and 6 bcm for Turkey.

The consortium of Azerbaijani Shah Deniz gas and condensate field development announced its choice of the TAP project in late June, as a route for transportation of gas to the European markets. Trans-Anatolian gas pipeline (TANAP) will be built to transport gas through Turkey; this pipeline will ensure gas deliveries to Europe.

The contract to develop the offshore Shah Deniz field was signed on June 4, 1996. Participants to the agreement are: BP as an operator (25.5 %), Norway's Statoil (25.5 %), Iran's NICO (10 %), France's Total (10 %), Russia's Lukoil (10 %), Turkey's TPAO (9%) and SOCAR, the state oil company of Azerbaijan (10 %).