By Trend

The geostrategic importance of Azerbaijan as an energy supply source for Europe has increased in the light of current geopolitical developments in Ukraine, Marika Karagianni, research associate at the Hellenic Foundation For European and Foreign Policy (ELIAMEP), said in her analysis, Trend reports.

She notes that the next generation of Azerbaijani offshore fields are considered of vital importance as a first diversification source for the second phase of the Southern Gas Corridor and the future interconnections in South Eastern Europe.

"Azerbaijan is far better placed from point of view geography and available volumes to supply South- Eastern Europe with gas. Proven reserves of Azerbaijan now amount to 1.3 tcm - following the discovery of Shah Deniz offshore gas field. In addition to Shah Deniz, the offshore gas discoveries of the last decade are bound to increase production and exports to Europe in the decade after 2020, given that foreign capital investment continues, regardless of the fluctuations in global oil prices. Fields like Umid (200 bcm and 40 million tons of condensate), Babek (400 bcm and 80 million tons of condensate), Shafag-Asiman (300 bcm) and Nakhchivan (300 bcm in place) in the Azerbaijani offshore sector will require substantial foreign investment, if they are going to be in a position to feed the Corridor and its future interconnectors in South Eastern and Central Europe," notes the expert.

Karagianni believes that the most promising discovery, however, has been the Absheron offshore gas field with estimated reserves of 350 bcm and 45 million tons of condensate.