BP Needs Additional Investment for Shah-Deniz

A BP-led consortium needs to raise investments in the Shah-Deniz gas field offshore Azerbaijan to $3.2 billion from an earlier estimate of $2.5 billion to $3 billion, a BP official said Tuesday. The first stage of the field's development, to be officially approved by the Azerbaijani government in the third quarter of 2002, will require a more expensive stationary submersible rig, said David Woodward, president of BP Azerbaijan.

The consortium will drill 12 wells and will start producing approximately 2 billion cubic meters of gas by 2005. Shah-Deniz is estimated to hold 700 bcm of gas and 300 million metric tons of gas condensate. Other members of the consortium include Statoil with 25.5% and TotalFinaElf with 10%.