Price of Azerbaijani gas for Turkey to be re-considered in line with market prices: minister

 Increasing gas price will not affect fuel prices for consumers in Turkey.The minister said this price was a price of gas in 2001, the contract was signed.Turkey buys Azerbaijani gas at $120 for 1,000 cubic meters. The contract also stipulates that the gas price can be considered a year
after the supplies is launched. So, new prices (which the sides are negotiating) will be applied beginning from April 15, 2008.

Under the contract, 6.6 billion cubic meters of gas will be transported to Turkey via Baku-Tbilisi-Erzurum per year as part of the Shah Deniz-1.

Shah Deniz partners plan to achieve this volume in 2009.

The contract on Shah Deniz off-shore field development was signed on 4 June 1996. The sides to the contract are ?? (operator - 25.5%), Statoil (25.5%), SOCAR (10%), LukAgip (10%), NICO (10%), Total (10%), and TPAO (9%). Field's reserves are estimated at 1.2 trillion cubic
meters of gas.

/Trend Capital/