Investment in Shah Deniz Stage 2 Seen at $10 Billion

Dow Jones Newswires

MOSCOW Oct. 1, 2007 (Dow Jones Newswires)

Investment in the second stage of the Shah Deniz gas field in Azerbaijan's section of the Caspian Sea could exceed $10 billion, a member of the operating consortium said Monday.

"We as investors are supposed to put a lot of money into Shah Deniz Stage-II. We're probably talking of at least $10 billion," said Jan Heiberg, the vice president of Statoil Azerbaijan.

BP Plc (BP.LN) and StatoilHydro ASA (STL) both own 25.5% stakes in the consortium developing Shah Deniz. The State Oil Co. of Azerbaijan, or Socar, OAO Lukoil Holdings (LKOH.RS) of Russia, France's Total SA (TOT) and NICO all own 10% each, while Turkey's TPAO owns 9%.

SOCAR said last week that recent drilling activity at the offshore field indicated total reserves of 1.2 trillion cubic meters of natural gas and 240 million tons, or over 1.75 billion barrels, of condensate.

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