Turkey intends to abandon "take or pay" principle in gas contracts
Azerbaijan, Baku, Jan.17 / Trend, A.Taghiyeva /
Turkey intends to abandon a "take or pay" principle in gas contracts with Azerbaijan and Iran by the end of 2013, the Hurriyet newspaper quotes Turkish Energy and Natural Resources Minister Taner Yildiz as saying.
He said from late January, Turkey will stop cooperation with Russia on the "take or pay" principle.
At present, Turkey receives gas from the Azerbaijani gas condensate field Shah Deniz through the South Caucasus gas pipeline. According to the contract, Turkey must receive 6.6 billion cubic meters of gas within the first stage of the field development. Turkey will receive six more billion cubic meters of gas from the second stage.
Total reserves of Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.
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.
Iran and Turkey signed an agreement on the annual supply of 10 billion cubic meters of gas to Turkey in 1996 (30 million cubic meters daily).