Azerbaijan, Baku, Dec. 1 / Trend E.Ismayilov /
The Sate Oil Company of the Azerbaijan Republic (SOCAR) and Turkish state pipeline company Botas mull technical details of the retail sales of Azerbaijani gas on the Turkish market, a source in SOCAR said.
"Now, the sides discuss technical details that should be agreed by the end," the source said.
It is early to speak about dates of start of Azerbaijani gas sales on the Turkish market. All will depend on the terms of agreeing the technical details.
SOCAR intends to launch retail sale of its gas on the Turkish market from early 2011, SOCAR President Rovnag Abdullayev said earlier.
An agreement was reached with the Turkish side to buy and later sell gas to Turkey to the amount of 1.2 billion cubic meters per year. Most gas will be transported to the petrochemical complex Petkim, where SOCAR has equity participation. The remaining amount will be sold to consumers on Turkish domestic market.
In the near future, SOCAR and Botas will sign a contract that provides for the gas transfer by the Turkish company to SOCAR's subsidiary in Turkey and its subsequent implementation in the domestic market of Turkey.
According to a memorandum of understanding signed between the Azerbaijani Industry and Energy Ministry and Energy and Mineral Resources Ministry of Turkey, SOCAR's affiliates will annually receive from Botas 1.2 billion cubic meters of gas from 6.6 billion cubic meters contracted for Turkey in the first stage of development of the Azerbaijani gas condensate Shah Deniz field. Gas will be transported by Botas for SOCAR until late 2016.
The cost of gas to the amount of 1.2 billion cubic meters will be made up of the cost of imported gas, cost of transportation inside the country and other tax duties.
Commercial terms of delivery of these amounts will be agreed between SOCAR and Botas under a "take or pay" contract.
Also, according to the memorandum, Botas will supply two billion cubic meters of gas to SOCAR for export to Syria and/or Bulgaria or Greece on terms to be agreed.