Baku and Ankara have signed an agreement to extend the supply of Azerbaijani gas under Stage-1 of the Shah Deniz field development, Azernews reports.

The document, signed for the period of 2025-2028, ensures the continuation of a fruitful energy partnership between the two nations.

In the third quarter of 2021, Azerbaijan and Turkiye concluded a new gas purchase and sale agreement for Stage-1, which stipulated the supply of 11 billion cubic meters of natural gas via the Baku-Tbilisi-Erzurum pipeline. The contract, covering the period from the fourth quarter of 2021 to the end of 2024, provided for the annual supply of 3.7 billion cubic meters of gas from Shah Deniz Stage-1. Deliveries under the agreement commenced on October 1, 2021.

The agreement on the exploration, development, and production sharing for the promising Shah Deniz field was initially signed on June 4, 1996, and ratified on October 17, 1996. In 2013, the duration of the Shah Deniz field development agreement was extended from 2036 to 2046, ensuring a long-term and stable energy collaboration between Azerbaijan and Türkiye.

The project involves several major energy companies, with BP as the operator holding a 29.99% stake, followed by Lukoil (19.99%), TPAO (19%), NIKO (10%), and SGC Upstream (21.02%).