Shah Deniz gas export income decreased

Shah Deniz gas export income decreased

“Azerbaijan’s income from export of gas and gas condensate within Stage 1 of Shah Deniz Project decreased by 36% to $189.5 million US this summer,” European website naturalgaseurope writes, quoting an anonymous source in the State Oil Company of Azerbaijan (SOCAR).

According to web resource, the cause is the decline in world prices for oil and gas, and the increase in capital expenditures on Shah Deniz 2. At that, production at the field increased by 9.5% compared to the same period of 2014 and accounted for 5.2 billion cu m for the past half-year. The main buyer of gas from Shah Deniz 1 is Turkey, which, according to the resource, in value terms reduced by 25% the import of Azerbaijani gas, and the price of gas condensate even decreased by 45%. According to the BP report on 1st half of 2015, the Shah Deniz Project partners bear high costs for the implementation of 2nd phase of the development of this Caspian field. So for Jan-Jun the Shah Deniz Project has been capex for $2.26 billion US, mainly for Stage 2 versus $1.766 billion US for the 2014 same term.

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