The signing of a contract on gas purchases and sales between Turkiye Petrolleri Anonim Ortakl?g? (TPAO) and Total Azerbaijan, according to a high-ranking Azerbaijani official.
Rovnag Abdullayev, the President of Azerbaijani State Oil Company (SOCAR), said that the contract would allow the Turkish side to increase its share in the project of development of Azerbaijani 'Shah Deniz' offshore gas and condensate field and in the South Caucasus Pipeline from nine percent to 19 percent.
Other documents were signed as well, in particular on the purchase of 10 percent of SOCAR's shares in the Trans Anatolian Natural Gas Pipeline Project (TANAP) by the Turkish state-owned Botas pipeline company. An agreement on gas transportation was also signed between Botas and TANAP
Rovnag Abdullayev said the implementation of the Shah Deniz development project and TANAP project will bring great profits both to Azerbaijan and Turkey.
At the same time, Azerbaijan's Energy minister Natig Aliyev said the signing of the documents is a new important event in the history of bilateral relations between Azerbaijan and Turkey.
Aliyev noted that among the signed documents the growth of Turkish side's shares in the Shah Deniz project and South Caucasus Pipeline, as well as, the shares in the TANAP are particularly significant.
Minister Aliyev said the Southern Gas Corridor project, which requires investments worth $45 billion, and in particular its constituent part - TANAP, are the largest energy projects of the Caspian and Mediterranean seas.
"TANAP, the construction of which is envisaged to start in April 2015, will contribute to the opening of thousands of new jobs, while transportation will bring great benefits and incomes to Turkey," the minister said.
Aliyev went on to say the Southern Gas Corridor is a project that will allow Europe to diversify its hydrocarbon sources and strengthen the energy security, while allowing Azerbaijan to obtain a new market in Europe
On December 17, 2013, a final investment decision was made on the Stage 2 of the 'Shah Deniz' offshore gas and condensate field's development. The gas produced at this field will first go to the European market.
The gas to be produced as part of the Stage 2 of the field's development, will be exported to Turkey and to the European markets by means of expanding the South Caucasus Pipeline and construction of the TANAP and the Trans-Adriatic Pipeline (TAP).
In September 2013, the consortium for development of Shah Deniz gas and condensate field in the Caspian Sea's Azerbaijani sector signed long-term gas-supply contracts (25 years) with nine European companies.
The contracts for purchasing gas from the Stage 2 of the development of Shah Deniz were signed in Baku with Shell, Bulgar gas, DEPA, Gas Natural Fenosa, EON, Gaz de France, Hera, Enel and Axpo companies.
The first volumes of gas will be delivered to Turkey in 2018, and to Europe in 2019.
The contract for development of the Shah Deniz offshore field, which has proven reserves of 1.2 trillion cubic meters of gas, was signed on June 4, 1996.
Partners operating for Shah Deniz field's development, which has reserves of 1.2 trillion cubic meters of gas, include SOCAR with a share of 16.7 percent, British BP (28.8 percent), Norwegian Statoil (15.5 percent), Iranian NICO (10 percent), French Total (10 percent), Russian Lukoil (10 percent) and Turkish TPAO (9 percent).