Baku, Azerbaijan, Aug.26
By Emil Ismayilov - Trend:
The credit committee meeting of the Asian Development Bank (ADB) on the allocation of credit to LUKOIL Overseas Shah Deniz in the second stage of development of Azerbaijani Shah Deniz offshore gas condensate field will be held on November 13, 2016, stated the document posted on the official website of the ADB.
The documentation indicates that the ADB is ready to allocate $450 million of additional funding to LUKOIL Overseas Shah Deniz in connection with the Shah Deniz-2 project, within the framework of which drilling of over 20 wells, the construction of two platforms, creating of subsea infrastructure, expansion of the Sangachal oil Terminal and the South Caucasus gas pipeline are planned.
Of the total funds provided, $250 million will be allocated on a rate of LIBOR, and the remaining $200 million according to the scheme of additional funding.
The contract on the Shah Deniz offshore field development with proven reserves of 1.2 trillion cubic meters of gas was signed on June 4, 1996.
Shares distribution of parties of the agreement (after the acquisition of Statoil share in the project by SOCAR and BP) is as follows: BP (operator) - 28.8 percent, Statoil - 15.5 percent, NICO - 10 percent, Total - 10 percent, Lukoil - 10 percent, TPAO - 9 percent, SOCAR - 16.7 percent. After the completion of sale and purchase of the Total share, the TPAO project share will be 19 percent.
Within the framework of the Shah Deniz project annual production of gas will increase from 9 billion cubic meters in the first phase, by an additional 16 billion cubic meters in the second phase.
Gas within the second stage of field development will be exported to Turkey and the European markets by expanding of the South Caucasus gas pipeline and the construction of the Trans-Anatolian (TANAP) and the Trans-Adriatic (TAP) gas pipelines.
The cost of the second stage of Shah Deniz development is estimated at $28 billion.
