StatoilHydro has a significant position in the Azerbaijani gas industry through its 25.5% stake in the Shah Deniz gas field.
The field, a considerable gas and condensate field, is situated in the Caspian
Sea, 70 kilometres southeast of the capital Baku.
Today, gas from Shah Deniz is supplied to customers in Azerbaijan, Georgia and Turkey.
The gas is transported through the South Caucasus Pipeline (SCP). The 690-kilometre- long pipeline runs to the border between Georgia and Turkey.
Further exploration of the field has confirmed that it contains enough gas
to warrant a new development phase. It is likely that phase 2 will be similar to
or bigger than phase 1, which produces almost nine billion cubic metres of gas
per year.
