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Azerbaijan’s Shah Deniz signs contacts with 9 European oil and gas companies

For the first time Azerbaijan gains access to European market

Photo ITAR-TASS

Photo ITAR-TASS

BAKU, September 19 (Itar-Tass) - Shah Deniz Consortium signed on Thursday contracts with European buyers of Azerbaijani gas.

Contracts for the period of 25 years were signed with nine major oil and gas companies. They envisage the sales of Azerbaijani gas that will be produced within the framework of the second state of the development of Shah Deniz field.

Gordon Birrell, BP’s Regional President for Azerbaijan, Georgia and Turkey, said at the ceremony that more than ten billion cubic meters of gas a year would be supplied to consumers in Italy, Greece and Bulgaria within the framework of these contracts. He said that by signing these contracts, Azerbaijan was for the first time getting access to the European market. This is one of the biggest contracts in the history of Azerbaijan’s oil and gas industry, he added.

He also said the signed contracts were bringing closer an investment decision on the second stage of Shah Deniz development that is expected at the end of the year.

According to the president of the State Oil Company of Azerbaijan, Rovnag Abdullayev, revenues on the contracts would amount to 200 billion dollars. “Gas will be transported through the Trans-Adriatic pipeline to Italy, Greece and Bulgaria,” he added. Abdullayev also expressed hope that Azerbaijani gas would be also supplied in future to other European countries.

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