World's Energy

05-26-2009 - Upstream OnLine - Production from the Shah Deniz gas field, in Azerbaijan's sector of Caspian Sea, is set to rise as officials plan for the second phase of development, Azeri ministers said. Azeri Energy Minister Natig Aliyev said production from Shah Deniz could rise roughly 15 billion cubic feet annually to about 318 billion cubic feet annually, the Trend news agency reports. Aliyev said that production level would be maintained until operations at the second phase of Shah Deniz begin, said a United Press International report. Gas from the offshore field goes to Azeri, Georgian and Turkish customers. Energy officials, however, blame Turkey for a series of setbacks from production at the second phase. The offshore Shah Deniz field began gas production in 2006. Gas production could reach 706 billion cubic feet once Phase 2 comes online in 2012. In February Turkey stated its intention to buy more natural gas from Azerbaijan through the Phase 2 development. Russia and Iran have eyed developments there as well. StatoilHydro is the majority operator of the field.