After 2036 socar could take upon itself Shah-Deniz commitments
Yesterday Shah-Deniz consortium signed the contracts with Shell, Bulgar gas, DEPA, Gas Natural Fenosa, EON, Gaz de France, Hera, Enel and Axpo to deliver 10 billion cub.m. of gas since 2019. The contract was signed for 25 years beginning since 2019. This means that the term of the contracts signed with the European gas importers expires in 2044. However, the term of the Shah-Deniz field development expires in 2036.
Does this mean that the term of the Shah-Deniz contract will be extended one more time. Rovnag Abdullayev, SOCAR President, said at a press conference that last year Azerbaijan and foreign partners of the Shah-Deniz project have agreed to extend the Shah-Deniz project by 5 years till 2036. "We cannot say right now if the contract will be extended again. However, if this does not happen, then after 2036 SOCAR will take upon itself all commitments on the gas contracts.
The contract for development of the Shah-Deniz offshore field was signed on June 4, 196 for the period of 25 years after extraction of first gas. The first gas was extracted in November 2006. The Shah-Deniz partners are BP (operator) - 25.5%, Statoil - 25.5%, NICO - 10%, Total - 10%, LUKoil - 10%, TPAO - 9% and SOCAR - 10%.-0-
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