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Iran’s NICO not considered as participant in projects on Azerbaijani gas supply to Europe

Oil&Gas Materials 2 August 2012 11:07
Participation of Iran’s Naftiran Intertrade Company (NICO) in pipelines that are designed to transport Azerbaijani gas to European markets, including Trans Anatolian gas pipeline (TANAP), is not being considered, a senior official of the State Oil Company of Azerbaijan (SOCAR) told Trend on Thursday.
Iran’s NICO not considered as participant in projects on Azerbaijani gas supply to Europe

Azerbaijan, Baku, Aug. 2 / Trend A. Badalova /

Participation of Iran's Naftiran Intertrade Company (NICO) in pipelines that are designed to transport Azerbaijani gas to European markets, including Trans Anatolian gas pipeline (TANAP), is not being considered, a senior official of the State Oil Company of Azerbaijan (SOCAR) told Trend on Thursday.

He said the Iranian company, which is one of the partners in Azerbaijani Shah Deniz gas field development, has not been invited to join any of these pipeline projects.

He also stressed that non-participation of the Iranian company in pipeline projects will not affect its position in Shah Deniz consortium.

"The gas sale from Shah Deniz field is not made by the companies independently, but jointly," he said.

Currently the Shah Deniz consortium considers two options to deliver its gas to Europe -

Nabucco West and Trans Adriatic Pipeline (TAP). The final decision on a pipeline route will be made in 2013.

In June Azerbaijan and Turkey signed intergovernmental agreement on TANAP, which envisages construction of the pipeline from the eastern border of Turkey to the country's western border to supply gas from Azerbaijani Shah Deniz gas field to Europe through Turkey.

At present, a 20 per cent share in TANAP belongs to Turkish BOTAS, 80 per cent and the State Oil Company of Azerbaijan (SOCAR). The initial capacity of the pipeline is expected to reach 16 billion cubic meters a year. About six billion cubic meters will be delivered to Turkey, and the rest - to Europe.

The contract to develop the offshore Shah Deniz field was signed on June 4, 1996. Participants to the agreement are: BP (operator) - 25.5 per cent, Statoil - 25.5 per cent, NICO - 10 per cent, Total - 10 per cent, LukAgip - 10 per cent, TPAO - nine per cent and SOCAR-10 per cent.

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