MGYOY Mol Magyar Olay Es Gazipari Rt (PK)

By Alessandro Torello

BRUSSELS--The companies leading the development of a giant natural gas field in Azerbaijan have agreed to fund the development of Nabucco West, one of two pipeline projects competing to carry that gas to Europe, the pipeline consortium said Thursday.

Nabucco reached an agreement about the Shah Deniz field with SOCAR--Azerbaijan's state-owned energy company--BP PLC (BP), Statoil ASA (STL.OS) and Total SA (TOT) on "joint funding of the development costs of the Nabucco West up to the pipeline selection decision for Shah Deniz' European export route," it said in a statement. The parties also agreed that the Shah Deniz companies would get a 50% stake in Nabucco, if the project will be selected to carry the gas to Europe.

The deal will be executed "shortly," Nabucco said in the statement.

Write to Alessandro Torello at alessandro.torello@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires