BAKU, Azerbaijan, Feb.10
By Leman Zeynalova – Trend:
In 2021, Shah Deniz spent more than $2 billion in operating expenditure and around $680 million in capital expenditure, the majority of which was associated with the Shah Deniz 2 project, Trend reports with reference to bp.
In 2020, Shah Deniz spent more than $1 billion in operating expenditure and $942 million in capital expenditure. As such, the opex on Shah Deniz rose by 100 percent, while capex dropped by 27.8 percent year-on-year.
In 2021, Shah Deniz celebrated the 25th anniversary since the signing of the Shah Deniz Production Sharing Agreement (PSA). The PSA was signed on 4 June 1996 between SOCAR and a consortium of foreign companies. It was ratified by the Milli Majlis and became effective on 17 October the same year. The project is the second after ACG largest foreign direct investment made in Azerbaijan and as such it has further strengthened the country’s economy. The Shah Deniz 25th anniversary marked an important milestone in the new history of Azerbaijan’s oil and gas industry.
Shah Deniz participating interests are: bp (operator – 28.83%), TPAO (19.0%), PETRONAS (15.5%), AzSD (10.0%), LUKOIL (10.0%), NICO (10.0%) and SGC Upstream (6.67%).
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