BP official: Shah Deniz won`t get caught up in Iran sanctions

BP official: Shah Deniz won`t get caught up in Iran sanctions

The project on developing Azerbaijan’s Shah Deniz natural gas field doesn’t expect to get caught up in any potential sanctions on Iran, BP Shah Deniz Development’s Marketing Manager Steve Garlick said Wednesday, The Wall Street Journal reported.

“There is at the moment an exemption, whether this exemption holds remains to be see,” Garlick said at the European Gas Conference in Vienna.

The increasing focus on the project in the U.S. because of Iranian national oil company Naftiran Intertrade Co.’s (NICO) 10% stake in the project was something that the company was watching carefully, he said.

“These projects are all about risk and managing risks,” said Garlick.

The European Union banned imports of oil from Iran on Monday and agreed to freeze the assets of Iran’s central bank, joining the United States in a new round of measures. The latest sanctions by the European Union will be fully enforced by July 1.

Officials from the British Foreign Office, the EU and BP say they asked Capitol Hill lawmakers in December to ensure that new sanctions don’t block the project on the second phase of Shah Deniz gas condensate field development.

“Obviously the situation is being monitored and we are actively involved with various political bodies and lobbyists and attempting to understand exactly what does this legislation mean for Shah Deniz,” Garlick said.

“There is at the moment an exemption, whether that exemption actually holds remains to be seen,” he said.

Gas, which will be produced during the second phase of Shah Deniz field development, is considered as the main source for the projects within the Southern gas Corridor. Within the Shah Deniz-2 project Azerbaijan plans to export 10 billion cubic meters of gas to Europe.

The field’s reserves are estimated at 1.2 trillion cubic meters.

The contract to develop the offshore Shah Deniz field was signed June 4, 1996. Participants to the agreement are: BP (operator) – 25.5 percent, Statoil – 25.5 percent, NICO – 10 percent, Total – 10 percent, LukAgip – 10 percent, TPAO – 9 percent, SOCAR-10 percent.

 

 

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