BP, Statoil, Total ready to buy part of Socar's stake in TANAP

9/7/2012

BP, Statoil, Total ready to buy part of Socar's stake in TANAP

BY AIDA SULTANOVA AND OLGA RAZUMOVSKAYA

MOSCOW -- BP, Statoil and Total are ready to buy some of the stake Azerbaijan's state-owned oil company Socar has in the TANAP pipeline project, Rovnag Abdullayev, Socar's president, told reporters.

Socar will leave for itself 51% of the share capital, 29% will will be sold to other companies, thus the controling stake will remain with Socar, Mr. Abdullayev said.

The three companies are Socar's partners in the development of the Caspian Shah Deniz development, the gas from which will be exported through TANAP as part of Stage-2 of the Shah Deniz project.

TANAP is a project of Azerbaijan and Turkey; it is intended for gas supplies to Turkey and Europe and if somebody wants to get their share there, the issue can be discussed, Mr. Abdullayev said commenting on the possibility of a purchase of a share in a pipeline by third parties, like Turkmenistan.

He also noted that the construction of the pipeline is to begin in 2013. At the moment Socar owns 80% in the project while Botas and TRAO have 20%. The construction cost of the pipeline is estimated at $7 billion.

The new gas pipeline is expected to have throughput capacity of at least 16 Bcm with a possibility of increaseing this to 32 Bcm.

Dow Jones Newswires

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