Azeri Shah Deniz Field's Phase 2 to Cost Up to $20B

The second phase of development for Azerbaijan's massive Shah Deniz gas/condensate field is expected to cost between $16 billion and $20 billion, Dow Jones reports, citing Natiq Aliyev, the Caspian country's energy minister.

Aliyev earlier confirmed that Shah Deniz's second stage of development would add 12 billion to 14 billion cubic meters to the field's total gas output. The energy minister also forecasted a rise in Azeri exports to Europe of some 15 billion to 20 billion cubic meters of natural gas a year from 2015 to 2030, Dow Jones noted.

Installed offshore in April 2006, the Shah Deniz platform is located 60 kilometers south of Baku in the Caspian Sea and was constructed to produce gas and condensate from what operator BP has called its "largest operated discovery since Prudhoe Bay."

UK oil major BP operates the Shah Deniz Field, the other partners of which consist of StatoilHydro, Total, Lukoil Holdings and local state oil firm Socar.