There is promotion with respect to changes in cost of Azerbaijani gas to Turkey: SOCAR

Seven rounds of negotiations on the matter have already been held, and changes in the cost of gas have been made. However, the parties have different approaches to the formula price, and the matter is pending, said the representative of SOCAR.

Azerbaijan intends to increase the price of gas to Turkey in the first stage of development of the Shah Deniz. Azerbaijan sales gas to Turkey at a price of $120 per 1,000 cubic meters. However, the price specified in the contract, concluded in 2001.

By the contract, the cost of gas from Shah Deniz could be reviewed one year after the start of supply, i.e. the new price would apply from April 15, 2008.

Under the contract, Turkey is to receive 6.6 billion cubic meters of gas from the Shah Deniz field in the first stage of the project.

The contract on development of off-shore Shah Deniz field was signed on 4 June 1996. Shah Deniz participating interests are: ?? (operator - 25.5%), StatoilHydro (25.5%), SOCAR (10%), LukAgip (10%), NICO (10%), Total (10%), and TPAO (9%).

/Trend Capital/