Ankara, Baku extend agreement on gas supplies from Shah Deniz field

Türkiye and Azerbaijan have signed an agreement to extend the supply of Azerbaijani gas within Stage-1 of the Shah Deniz field development.

The document was signed for the period 2025-2028, according to Report.

In the third quarter of 2021, Azerbaijan and Türkiye signed a new agreement on purchasing and selling gas from Stage-1 - 11 bcm of natural gas through the Baku-Tbilisi-Erzurum pipeline. The agreement provides for the delivery of 3.7 bcm of gas per year from Shah Deniz Stage-1 annually until the end of 2024 (fourth quarter of 2021 to 2024).

Deliveries under the agreement started on 1 October 2021.

The agreement on exploration, development and production sharing from the promising Shah Deniz field was signed on 4 June 1996 and ratified on 17 October 1996. In 2013, the term of the Shah Deniz field development agreement was extended from 2036 to 2046.

BP (operator - 29.99 per cent), Lukoil (19.99 per cent), TPAO (19 per cent), NİKO (10 per cent), SGC Upstream (21.02 per cent) participate in the project.