Azeris approve Caspian megaproject
Azerbaijan's Parliament has ratified a contract signed in early June between the State Oil Co. of Azerbaijan (Socar) and a foreign group to develop Shah Deniz giant oil field in the Caspian Sea at a cost of $4 billion.
The group consists of Russia's Lukoil, British Petroleum Co. plc, Norway's Den norske stats oljeselskap, Turkey's TPAO, Elf Aquitaine, and National Iranian Oil Co. Shah Deniz is thought to contain a resource of about 17.5 tcf of gas, 1.5 billion bbl of condensate, and 1.4 billion bbl of crude oil. Start-up is projected for 2002 under a 35-year contract. The project will enable Azerbaijan to become a significant natural gas exporter.
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