Gazprom signs gas deal with Azerbaijan

OAO Gazprom will import 500 million cu m of Azerbaijani gas starting in January 2010 under a contract signed with State Oil Co. of Azerbaijan Republic (SOCAR).

Uchenna Izundu
OGJ International Editor

LONDON, Oct. 16 -- OAO Gazprom will import 500 million cu m of Azerbaijani gas starting in January 2010 under a contract signed with State Oil Co. of Azerbaijan Republic (SOCAR).

“The contract doesn’t limit the maximum purchase volume. The gas price will be defined under a price formula,” said Gazprom. Gas volumes may increase, it added, and signified a long term partnership with Azerbaijan.

Alexey Miller, chairman of the Gazprom’s management committee, recently led a delegation to Azerbaijan. Miller said, “Gazprom owns the world’s largest contract portfolio for gas supply to the domestic and foreign markets as well as an advanced and flexible gas transmission system; Russia and Azerbaijan have a common border and have already been connected by the unified infrastructure.”

Azerbaijan holds up to 1.5 trillion cu m of proved natural gas reserves, including the Shah Deniz field in the Azerbaijani sector of the Caspian Sea with recoverable reserves of more than 1.3 trillion cu m of gas.

Contact Uchenna Izundu at uchennai@pennwell.com.

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