OREANDA-NEWS. May 07, 2010. The State Oil Company of Azerbaijan (SOCAR) is finishing negotiations with Turkey on “gas package”, including prices for gas within Phase 1 of Shah Deniz Project in Azerbaijani sector of the Caspian Sea, volumes and gas prices within Phase 2 of Shah Deniz Project, conditions of Azeri gas transit through Turkish territory.

SOCAR president Rovnag Abdullayev says that principal agreement with Turkey has been achieved but work over concrete agreements should be done now.

“We’ve found and accorded concept way to tackle gas problems. And now we need to realize it. The package of four agreements, includes a transit one in particular,” Abdullayev said.

SOCAR Investment Department’s head Vagif Aliyev says that Turkish experts will arrive in Baku for further work over agreements on the basis of protocol of main principles.

“The experts will work on 13 May. The entire range of issues has been coordinated by us. The price of supplied gas will be defined n market formulae. Transit payment, size and order of repayment of the difference between transit payments and cost of gas,” Aliyev said.

Signing of this package can be signed within the framework of Turkish prime minister Recep Tayip Erdogan’s visit to Azerbaijan on 16 May.

“Principle agreement with Turkey means that we get an opportunity to transit gas through Turkish territory. Thereby we close transport cycle receiving a possibility of export via all directions. All export sales will be carried out under market prices existing in any countries,” Abdullayev said.

Agreements with Turkey allow Azerbaijan to launch negotiations about export of future volumes of gas to be received within Phase II of Shah Deniz Project.

“We are diversifying ways of export. There are a lot of ways and all the relevant proposals are under study. After signing of agreements with Turkey we will begin talks with potential buyers of Shah Deniz-2 gas. Their brief list has been made and it includes both Gazprom and European companies. Our main condition during export is maximum his price for our gas. Each route has its own payment for transit. If to minus it we will define what direction and what point of delivery are most profitable for us,” Abdullayev said.

In his turn, Aliyev found it difficult to make any forecasts on completion of negotiations with potential buyers within Phase 2 of Shah Deniz Project until the end of 2010.