Uzbekistan Plans to Enter the Shah Deniz project in the Caspian Sea
Uzbekneftegaz plans to become a participant in the project to develop the Shah Deniz gas field in the Azerbaijani sector of the Caspian Sea, Minister of Investment, Industry and Trade of Uzbekistan Laziz Kudratov told reporters on Tuesday.
“Uzbekneftegaz” and SOCAR (State Oil Company of Azerbaijan, SOCAR) may sign an agreement in the coming months on the entry of an Uzbek company into the Shah Deniz project,” Kudratov said in Guba (Azerbaijan).
“We are now talking with SOCAR regarding its participation in oil and gas production projects in Uzbekistan. Similarly, the issue of Uzbekneftegaz’s entry into gas production enterprises in Azerbaijan is being discussed and is at the final stage,” he added.
Kudratov also noted that the issue of share is still being discussed and is a subject of negotiations. “We hope that this will happen soon,” he added, answering a question about the timing of signing the agreement.
At the same time, the minister added that a state visit to Uzbekistan by Azerbaijani President Ilham Aliyev is being prepared.
“Of course, we aim to ensure that this visit is filled with specific content. We will count on the fact (that an agreement will be signed during the visit – IF),” he said.
Kudratov noted that the project is complex, requires legal expertise, and foreign consultants are involved in this process. “But we are optimistic about the prospects,” he stressed.
The contract for the development of the Shah Deniz field was signed in 1996. The share participation of the parties in the contract is currently as follows: British BP plc (project operator – 29.99%), LUKOIL (19.99%), Turkish TPAO (19%), Azerbaijani Cenub Qaz Dehlizi (21.02 %), Iranian NICO (10%).
Gas and condensate production from the Shah Deniz field began in December 2006 and is now carried out from the Alpha platform as part of Stage-1 and from the Bravo platform as part of Stage-2.
Shah Deniz is the largest gas field in Azerbaijan.
Azerbaijan currently has gas supply contracts from the Shah Deniz field with Georgia, Turkey and six European countries (Italy, Greece, Bulgaria, Romania, Hungary and Serbia).
Uzbekneftegaz is a vertically integrated company that unites more than 50 specialized organizations, in particular 13 joint ventures, 10 divisions for the production and processing of hydrocarbons, as well as a number of coordinated non-production and scientific and technical units.
