OREANDA-NEWS. June 03, 2009. Azerbaijan has developed the scheme of creating a specialized company to export natural gas.

State Oil Company of Azerbaijan Republic (SOCAR) Vice-President Elshad Nasirov said there are several institutions working within “partners + state” format within consortium developing Shah Deniz gas condensate field in Azerbaijan sector of the Caspian. These institutions develop different versions of sales, marketing, partners’ responsibility and are responsible for searching the right gas marketing decisions.

“At the same time final decision on creating AGSC (Azerbaijan Gas Supply Company), which is to sell and control this commercial contract, has not been made yet. We have interrupted the creation process ourselves, because it has own sizable expenditures. We count all the money within crisis conditions, so we proceed from the search of geopolitical, commercial and geographic gas export versions, definite gas consumers or optimal ways of gas deliveries up to end-consumers. It is still early to establish and finance such company now,” Nasirov said.

At Stage 2 of the field development, technical operator is BP and commercial operator – StatoilHydro.

AGSC is necessary in connection with expected production and export growth within Stage 2.

“When created, this company will be operated by institution appointed by the state. Most likely it will be SOCAR. This company will include Shah Deniz major partners as well, who will share roles and responsibilities for fulfilling technical, commercial, financial and other functions,” Nasirov stated.

Shah Deniz Stage 2 export potential is estimated at 30 bn cu m a year.

“The main task for today is to find a perfect Azerbaijani gas export decision as well as Caspian gas export through Azerbaijan.” Nasirov noted.