Baku, Azerbaijan, Apr. 10
By Maksim Tsurkov - Trend:
Turkey will never give up its share in Trans-Anatolian Gas Pipeline (TANAP). There are several reasons for that, and the main one is the fact that Ankara should have the tools of influence and decision-making on the biggest infrastructure project passing through Turkey.
At the same time, this pipeline is a tool of influence of Ankara on Europe, which is no longer a secret for anyone. It should be noted that Turkey has a stake in the Shah Deniz project (state-owned TPAO company), which also leads to the need to preserve the equity in the project.
Another thing is that Turkey may sell a part of its 30 percent stake in TANAP. First of all, it would allow Ankara to reduce the financial burden on investment in its implementation, as for financing of the project worth $10-11 billion Turkey will need more than $3 billion.
Second, it would reduce the risk due to dividing of responsibility between the large number of companies.
Third, it would release the resources of the country for participation in other projects. The sale of a part of share by Turkey will not affect its earnings. Having saved on financing, Turkey in any case will receive significant funds from gas transit through its territory.
In principle, SOCAR (State Oil Company of Azerbaijan) can sell a part of the equity in the project (58 percent). A huge share requires considerable resources (more than $6 billion) to finance the project, which is very difficult during the current crisis conditions.
It will be enough for Azerbaijan to keep the package that allows receiving and blocking decisions and actually controlling the pipeline. Azerbaijan acted according to such principle when acquiring a stake in Trans Adriatic Pipeline (TAP).
Regarding potential buyers of the stake in the project, their circle is relatively clearly outlined. The company SOCAR repeatedly said that only the companies willing to transport its gas through the pipeline can become participants of TANAP. At the same time, it can be not only companies from Turkmenistan and Iran. The most immediate candidates for equity participation in the project may become companies which produce natural gas in Azerbaijan.
In the coming years, the French companies plan to begin drilling at the Absheron field, SOCAR holds a tender to attract a partner in the project Umid, there is a large number of other prospective structures in the country, and their exploration and exploitation will demand routes for the export. Namely these companies may become participants of TANAP in the short term.
Maksim Tsurkov is Trend Agency's staff journalist, follow him on Twitter: @MaksimTsurkov