Selection of the main contractors within the second phase of the Shah Deniz field's development in the Azerbaijani sector of the Caspian Sea is nearing completion, a source in the oil and gas market told Trend on Nov. 29.

According to the source, the final decisions will be made in early 2014 and then a process for signing contracts with major contractors will start. These contractors will be involved in construction works.

"First of all it concerns the contractors, who will be engaged in the platform's construction, establishment of the necessary underwater infrastructures and others. The project is very large and contractors will be required to prepare for the beginning of constructions," the source said.

The constructions within the second stage of Shah Deniz will start in July 2014.

Plans for the project include building of two new offshore platforms, connected to each other via a bridge, drilling of 26 underwater wells with two semi-submersible drilling rigs, construction of 500 kilometres of underwater pipelines at a depth of 550 meters, creation of additional opportunities for export in Azerbaijan and Georgia and extension of Sangachal terminal.

The reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.

The contract on development of the offshore Shah Deniz field was signed on June 4, 1996. Its participants are: BP (operator) - 25.5 per cent, Statoil - 25.5 per cent, NICO - 10 per cent, Total - 10 per cent, Lukoil - 10 per cent, TPAO - nine per cent and SOCAR - 10 per cent.

Gas to be produced within the second phase of the field's development will be exported to Turkey (six billion cubic meters) and to Europe (10 billion cubic meters).