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. Last Updated: 07/27/2016

Azeri Gas Project Delayed by One Year

BAKU, Azerbaijan -- Starting the second, $10 billion phase of Azerbaijan's biggest gas field, Shah Deniz, has been delayed by one year to 2013 as the project faces development problems, the project's co-operator said Monday.

"Launching phase two in 2013 is more realistic. The postponement comes from complications in drilling and a delay in extracting gas," Statoil vice president Jan Heiberg said.

Statoil is co-operator with BP.

Gas was first retrieved from the development in the Caspian Sea in December 2006 during phase one until geophysical oversights and sudden well leaks halted extraction until February of this year. Currently Shah Deniz produces around 15 million cubic meters of gas per day and has reserves of 1.2 trillion cubic meters and sends all of it to Turkey via Georgia.

Azeri state energy firm Socar is a partner in Shah-Deniz with LUKoil, France's Total and Iranian and Turkish state firms.