Azerbaijan, Baku, March 7 / Trend A. Taghiyeva, E. Ismayilov /
The Turkish Petroleum Company (TPAO) has invested $3.4 billion in oil, gas and pipeline projects in Azerbaijan from 1994 to late 2011, financial manager at TPAO representative office in Azerbaijan Hakan Erbash told Trend today.
Erbash said this is Turkey's biggest state investments in Azerbaijan's economy. He also stressed that the company's income from all energy projects totaled $ 5.3 billion from the beginning of TPAO activity in Azerbaijan until late 2011.
"About $2.3 billion were invested in the oil and gas fields Azeri-Chirag-Guneshli development project (ACG) by our company from the beginning of its activity in Azerbaijan," Erbash said. "This is the first project in Azerbaijan, where TPAO began taking part."
He said the company's investments in the Azeri-Chirag-Guneshli project will continue until 2024, but the investment amount will depend on the block's production volume.
The contract to develop a large offshore field Azeri-Chirag-Guneshli was signed in 1994.
Participants to develop Azeri-Chirag-Guneshli are: BP (operator - 35.83 percent), Chevron (11.27 percent), Inpex (10.96 percent), AzACG (11.6 percent), Statoil (8.56 percent), Exxon (8 percent), TPAO (6.75 percent), Itocu (4.3 percent) and Hess (2.72 percent).
So far, TPAO has paid taxes to the amount of $ 650 million to the Azerbaijani state budget within the ACG project.
"The figure will hit $120-130 million this year," Erbash said.
He said TPAO's investments as a participant in the South Caucasus gas pipeline and the Baku-Tbilisi-Ceyhan oil pipeline have been completed.
In particular, the company has invested $120 million in the implementation of the South Caucasus gas pipeline project and $324-325 million in the Baku-Tbilisi-Ceyhan pipeline project.
The BТС's total length is 1.768 kilometers.
BTC Co. shareholders include: BP (30.1 percent); AzBTC (25 percent); Chevron (8.90 percent); Statoil Hydro (8.71 percent); ТРАО (6.53 percent); Eni (5 percent); Total (5 percent); Itochu (3.40 percent); Inpex (2.50 percent); ConocoPhillips (2.50 percent) and Amerada Hess (2.36 percent).
The length of the Baku-Tbilisi-Erzurum pipeline (South Caucasus Pipeline) is more than 700 kilometers. Power flow is more than 20 billion cubic meters of gas a year. Gas produced at gas-condensate field Shah Deniz in Azerbaijan sector of the Caspian Sea is transported through this pipeline. Gas is supplied to Georgia and Turkey. Azerbaijan also buys gas.
TPAO's investment amount in Azerbaijan is expected to increase if the Araz-Alov-Sharq project intensifies its scale. The project is frozen at the moment due to the Caspian Sea's unresolved status.