Gas contracted from Shah Deniz Stage 2 development in Caspian Sea

The Shah Deniz consortium have concluded 25-year sales agreements for more than 10 bcm/yr (353 bcf/yr) of gas from the Shah Deniz field in the Azeri sector of the Caspian Sea as a result of the Stage 2 development.

Offshore staff

BAKU, Azerbaijan – The Shah Deniz consortium have concluded 25-year sales agreements for more than 10 bcm/yr (353 bcf/yr) of gas from the Shah Deniz field in the Azeri sector of the Caspian Sea as a result of the Stage 2 development.

In total,Shah Deniz Stage 2 gas will deliver 16 bcm/yr (565 bcf/yr) through more than 3,500 km (2,175 mi) of pipelines crossing Azerbaijan, Georgia, Turkey, Greece, Bulgaria, Albania, and the Adriatic Sea to eastern Italy. Turkey’s BOTAS agreed to purchase 6 bcm/yr (212 bcf/yr) in 2011.

The buyers are: Axpo Trading AG, Bulgargaz EAD, DEPA Public Gas Corp. of Greece S.A., Enel Trade SpA, E.ON Global Commodities SE, Gas Natural Aprovisionamientos SDG SA, GDF SUEZ S.A., Hera Trading srl, and Shell Energy Europe Ltd. Around 1 bcm/yr (35 bcf/yr) will go to buyers supplying markets in Bulgaria and Greece, with the rest going to buyers intending to supply Italy and adjacent market hubs.

The gas sales agreements will enter into force following the final investment decision on the Shah Deniz Stage 2 project, targeted for late this year.

This will include construction of two new bridge-linked production platforms 70 km (43.4 mi) offshore; 26 subsea wells drilled by two semisubmersible rigs; and 500 km (310 mi) of subsea pipelines in up to 550 m (1,804 ft) water depth.

BP operates Shah Deniz, in partnership with Statoil, SOCAR, Total, Lukoil, NICO, and TPAO.

9/25/2013

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