BP: Two Options Being Considered For Shah Deniz Pipeline
November 28 2011 - 1:17PM
Dow Jones News
Two alternative ways of piping gas from the giant Shah Deniz
field in Azerbaijan will be considered now that a series of accords
have been agreed between Turkey and the southern Caucasian nation
setting out how natural gas will be transported from the Caspian
Sea to Europe for the first time, BP PLC (BP.LN) said Monday.
U.K. energy giant BP leads the consortium currently developing
the field offshore Azerbaijan, which hopes to eventually export 10
billion cubic meters per year of gas across Turkey to Europe.
"The agreements allow two alternative pipelines to be considered
in parallel," said BP in a statement. "One consists of an upgrade
of the existing Turkish Petroleum Pipeline Corp., or BOTAS,
pipeline network, while the other would entail construction of an
entirely new standalone pipeline across Turkey," said BP.
The move comes after the boards of BP, the Azerbaijan State Oil
Company Socar and BOTAS formally ratified the series of 14
agreements reached by Turkish Prime Minister Recep Tayyip Erdogan
and Azerbaijan President Ilham Aliyev last month that lays out how
the Shah Deniz field will continue to be developed.
BP operates the Shah Deniz field with Statoil, Azerbaijan's
Socar, Russia's OAO Lukoil Holdings (LKOH.RS), France's Total SA
(TOT), National Iranian Oil Co. and Turkey's TPAO as partners.
According to BP, the standalone pipeline would be built by a new
consortium, including both Turkish and gas producer companies.
-By Alexis Flynn, Dow Jones Newswires; +44 207842 9471,
alexis.flynn@dowjones.com