Budgetary costs of shah-deniz for year 2013 planned to reach $2.9 billion

In 2013 it is planned to spend $2,882 billion for the Shah-Deniz project in 2013, reads press release of BP-Azerbaijan company.

Of this sum $222 million will fall to the operation costs and $2.66 billion to the capital costs. In 2012 these showings totaled $269 million and $1,009 million, respectively.

This year the capital costs have increased, because the Shah-Deniz Stage-2 project has intensified.

The cost of the Stage-2 project is estimated at $25 billion. The project operators allow increase in the project cost by 20% - up to $30 billion.

The beginning of gas production within Stage-2 project is expected in 2018. Minimum annual production of the Stage-2 will total 16 billion cub.m. of gas, of which 10 billion will be delivered to Europe and 6 billion cub.m. to Turkey.

* The contract for development of the Shah-Deniz field as signed in Baku on June 4, 1996. Three years later the big gas condensate field was discovered. The first gas was produced in November 2006. Since that time till January 1, 2013 a total of 37.6 billion cub.m. of gas and 80 million barrels of condensate has been extracted on the field. The project partners are BP (operator 25.5%), Statoil (25.5%), SOCAR (10%), LUKoil (10%), NICO (10%), Total (10%) and TPAO (9%).—0—