Azerbaijani offshore gas condensate field Shah Deniz has the potential for the third stage of development, BP regional president on Azerbaijan, Georgia and Turkey Gordon Birrell said.
This was stated by Birrell in an interview with the magazine "The Business Year: Azerbaijan 2013".
According to Birrell, the company's goal now is to implement the second stage of field development, investment decision on which is to be adopted in late 2013. According to plans, the first gas within Shah Deniz-2 is expected to be produced in 2018.
It is planned to produce 16 billion cubic meters of additional gas within the second stage of field development that will be delivered to both regional and European markets.
According to Birrell, the second stage of development of Shah Deniz field with total planned investment capital of about $ 40 billion is currently one of the largest projects in the world, and the largest of BP's projects.
Currently, the Shah Deniz consortium is considering two options for its gas transportation to Europe - TAP and Nabucco West (through the territory of Greece). Azerbaijan plans to export 10 billion cubic meters of gas a year to Europe within the second stage of development of Shah Deniz field.
First gas production within Shah Deniz-2 project is expected for 2018.
Two offshore platforms will be installed and more than 20 subsea wells will be drilled for the production of an additional 16 billion cubic meters of gas a year under the Shah Deniz-2. It is predicted that gas production can be brought up to 24 billion cubic meters a year in the second stage of field development.
Gas reserves of Shah Deniz field are estimated at 1.2 trillion cubic meters.
The contract to develop the offshore Shah Deniz field was signed on June 4, 1996. Participants to the agreement are: BP (operator) - 25.5 per cent, Statoil - 25.5 per cent, NICO - 10 per cent, Total - 10 per cent, LukAgip - 10 per cent, TPAO - nine per cent and SOCAR-10 percent.