Cost of the Stage-2 project within the framework of the Shah-Deniz gas condensate field development continues rising.
The project was earlier estimated at about $20 billion. However on April 17, 2012 after the visit of BP President Robert Dudley to Baku and his meeting with president, BP-Azerbaijan company announced beginning of the new stage, which allows preserving the Shah-Deniz consortium's plans to begin gas export as a part of the Stage-2 by the end of 2017. It was announced that cost of the Stage-2 of the Shah-Deniz gas condensate field development will total $25 billion.
In early December 2012 in his speech at the Caspian Forum in Istanbul SOCAR President Rovnag Abdullayev said that implementation of the Stage-2 project will cost the partners of the consortium $28 billion. Almost a month later on December 30, 2012 SOCAR President told journalists that it is planned to be invest $28-30 billion to implement the Stage-2 project.
The accurate information about capital costs of the Stage-2 project is unavailable now. This will become possible only after final investment decision on the Stage-2 project is made and this will happen only at the end of this year.
Despite growing cost of the project, the date of putting of the wells into operation and beginning of the first gas export will not accelerate. According to the reliable sources from the Shah-Deniz consortium, the first gas within the Stage-2 project is planned to be extracted only in early 2018. On the first year it is expected to extract only 4 billion cub.m. of gas. In 2019 this volume will grow up to 12 billion cub.m. The consortium plans to reach the designed project capacity of 16 billion cub.m. by 2020. The first gas from the Stage-2 project will be delivered to the Turkish market no earlier than the second quarter 2018.
* The Shah-Deniz project partners are BP (operator) - 25.5%, Statoil -25.5%, SOCAR -10%, NICO - 10%, Total - 10%, LUKoi - 10% and TPAO - 9%. The Shah-Deniz project, which was signed on June 4, 1996, expires on October 16, 2036.-0-
Economics
-
On July 26, the Ministry of Economy hosted a meeting with entrepreneurs from the non-oil industry to explore ways to stimulate local production and enhance export potential.
-
Azerbaijani internet service providers Aztelekom and Baktelekom will introduce substantial changes to their pricing structure starting August 15, the companies announced today. Under the new tariffs, the minimum internet speed will rise to 100 Mbit/s, with the cost per Mbit/s decreasing from 0.45 AZN to 0.25 AZN. As a result, monthly charges will be set at 25 AZN for 100 Mbit/s, 30 AZN for 150 Mbit/s, and 36 AZN for 250 Mbit/s.
-
Independent experts suggest that Azerbaijan may be on the verge of another devaluation of its currency, the manat, due to a shrinking trade and payment surplus. The anticipated economic adjustments come amidst a decline in foreign currency inflows and reduced oil production.
-
Azerbaijan’s Foreign Minister Jeyhun Bayramov met today with Ahmed Moallim Figi, the Minister of Foreign Affairs and International Cooperation of Somalia, at the Azerbaijani Foreign Ministry. This meeting followed a discussion held the previous day between Figi and Azerbaijan’s Economy Minister Mikail Jabbarov.
Leave a review