The project aims to produce 120,000 barrels of condensate gas per day from the Shah Deniz field in Azerbaijan – expanded from 50,000 barrels per day – over the next 48 years. The contract was extended from the 25 years initially proposed in September.
The project will develop a new transport network, to deliver 16bn cubic metres of gas through over 3500km of pipelines to Georgia, Turkey, Greece, Bulgaria and Italy.
First gas is targeted for late 2018, with sales to Georgia and Turkey. First deliveries to Europe will follow around a year later.
FTSE 100-quoted BP operates the venture and owns a 28.8 per cent stake. Norway’s Statoil owns a 15.5 per cent stake after selling part of its holding to Azerbaijan state company Socar and BP. The other stakeholders are France’s Total, Russian firm Lukoil, Iran’s Nico and Turkey’s TPAO. BP chief Bob Dudley said: “As well as creating tens of thousands of jobs...this project represents the largest ever foreign investment to Azerbaijan.” BP closed down 1.73 per cent.