Shah Deniz production rises

BAKU, Azerbaijan, May 26 (UPI) -- Production output from the Shah Deniz gas field in the Caspian Sea is set to rise as officials plan for the second phase of development, Azeri ministers say.

Azeri Energy Minister Natig Aliyev said production from Shah Deniz could rise roughly 15 billion cubic feet per year to approximately 318 billion cubic feet per year, the Trend news agency reports.

Aliyev said that production level would be maintained until operations at the second phase of Shah Deniz begin.

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.