Shah-Deniz-2 project to be authorized in October 2013

The Stage-2 of development of the Shah-Deniz gas condensate field is expected to be authorized in October 2013.

In his interview to the Belgian weekly New Europe Elshad Nasirov, Vice President for Investments and Marketing of State Oil Company of Azerbaijan (SOCAR), said that final investment decision on the Shah-Deniz-2 is planned to be made by October 2013. He added that the works proceed according to the schedule.

In January 2013 Alasdair Cook, BP Vice President for Shah-Deniz project, told journalists in Baku that the Stage-2 is expected to be authorized in the second half of 2013. He claimed that only at the end of June the partners of the Shah-Deniz consortium will choose the route of gas deliveries to Europe. After that the calculations should be corrected to work out the details of the Stage-2 project.

Nasirov told in his interview to New Europe that at the end of December 2012 the Shah-Deniz shareholders approved the Stage-2 budget for year 2013.

He said the talks on gas sale have already started with the companies and countries, which would like to be potential buyers of fuel from the Caspian region. The talks are expected to be completed by the end of March 2013.

Nasirov said that the cost of transportation and net profit from gas sale for the buyers of Nabucco West and TAP (Trans-Adriatic Pipeline) will be analyzed, which will allow making a final decision on the transportation route by the end of June 2013. "After that we will have a chance to make a final investment decision by October 2013," Nasirov added.-0-