Azerbaijan extends Shah Deniz PSA

Extended: Sha Deniz II PSA gets pushed back to 2036

BP

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By Luke Johnson & news wires

 25 January 2013 17:45 GMT

Azerbaijan has given BP another five years on the production sharing agreement for the massive Shah Deniz gas project after the UK supermajor pushed back the start date for the second phase.

"We have agreed to extend the Shah Deniz PSA from 2031 to 2036, and the Shah Deniz partners will now proceed with phase two", Elshad Nassirov, vice president of the Azeri state oil company Socar, told Reuters.

BP said earlier this week that it was targeting 2018 for first gas from the $10 billion second phase, a year later than previously planned.

Shah Deniz, Azerbaijan's biggest gas field and is estimated to hold 1.2 trillion cubic metres of gas. It has been pumping gas from its first phase since 2006 with a capacity of 8 billion…

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