Shah Deniz

Shah Deniz
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Shah Deniz

The Agreement on the Exploration, Development, and Production Sharing for the Shah Deniz Prospective Area in the Azerbaijan Sector of the Caspian Sea was signed on June 4, 1996, and went into effect the same year on October 17. The stakes of the stakeholders are distributed as follows:

Env Txt Img

• Statoil (Norway) – 26%
• BP (Great Britain) – 25%
• SOCAR – 10%
• LUKAcip (Russia-Italy) – 10%
• NİKO (Iran) – 10%
• Total (France) - 10%
• TPAO (Turkey) – 9%

Shah Deniz is located in waters 50m to 500 m deep 55 km SE of Baku. The Agreement covers an area of approximately 859.8 km2. The exploration period is 3 years, and at least 2 exploration wells had to be drilled, while an additional well was drilled during an extension of the exploration period. According to the agreement the development period is 30 years and can be extended for another 5 years. BP Exploration Shahdeniz Ltd. was established to serve as the operator. The primary development targets are the Balakhany VIII, X and "Pereryv" strata at depths of 5000-6500 m.

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