Fitch: Gas production in Azerbaijan to grow

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Oil prices this year are expected to reach $65, Director of Fitch Ratings Sovereign Group in Europe Marina Stefani told Trend.

She said that next year oil prices will be at $62.5. The expert also noted that gas production in Azerbaijan will grow due to the production from the second stage of Shah Deniz field’s development.

The contract for the development of the Shah Deniz offshore field was signed on June 4, 1996. In accordance with the documents signed in Baku on December 17, 2013, the contract for the filed development was extended from 2036 to 2048, while the shares of SOCAR and BP (the project operator) in the project increased up to 16.7 percent and 28.8 percent respectively.

Share distribution among the parties to the agreement: BP (operator) -28.8 percent, AzSD – 10 percent, SGC Upstream – 6.7 percent, Petronas – 15.5 percent, Lukoil – 10 percent, NICO – 10 percent and TPAO -19 percent.

The proved reserves of the field reach 1.2 trillion cubic meters of gas and 240 million tons of condensate.