March 21, 2013
By Mert Özkaplan
According to the official newspaper of the Turkish government, Resmi Gazate, Turkish Cabinet of Ministers approved the agreement on cooperation regarding Trans-Anatolian Gas Pipeline project.
According to Resmi Gazate’s report, the agreement between Turkey and Azerbaijan on the construction of TANAP is ratified on 18 March 2013. BOTAS (a Turkish energy firm) and Turkish Petroleum Corporation (TPAO) have a total of 20 percent share in TANAP project, and the rest of the shares (80%) belong to a partnership headed by the State Oil Company of Azerbaijan (SOCAR). Lastly, SOCAR officials announced that they intend to retain 51 of the equity of the project.
Speculations have pointed out that the State Oil Fund of Azerbaijan will contribute to the Trans-Anatolian gas pipeline project (TANAP). The head of SOCAR, Rovnag Abdullayev, told journalists that the ratio of participation of the State Oil Fund in the project is not yet determined. According to Abdullayev, it is currently being discussed.
SOCAR partners showed their interest to acquire 29 percent share in TANAP project by distributing the share as follows: Statoil and BP are to recive 12 per cent each and TOTAL would get five per cent.
TANAP project is designed to deliver Azerbaijani gas extracted from Shah Deniz field through Turkish borderlands in order to help satisfy the oil demand on the part of several European countries. At the beginning, the transportation capacity of TANAP project is estimated to be around 16 billion cubic meters a year, out of which around six billion cubic meters will be delivered to Turkey, and the rest to be delivered mostly to East European countries.
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