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SOFAZ to get a stake in TANAP

Oil&Gas Materials 1 March 2013 17:15 (UTC +04:00)
The State Oil Fund of Azerbaijan will get a share in the Tans-Anatolian gas pipeline project (TANAP), head of SOCAR Rovnag Abdullayev told journalists.
SOFAZ to get a stake in TANAP

Azerbaijan, Baku, Mar. 1 / Trend, E. Ismayilov /

The State Oil Fund of Azerbaijan will get a share in the Tans-Anatolian gas pipeline project (TANAP), head of SOCAR Rovnag Abdullayev told journalists.

According to him, the State Oil Fund will receive dividends on the basis of equity participation in the project. SOCAR intends to retain 51 percent of the equity in the project.

"The ratio of participation of the State Oil Fund in the project is not yet determined. It is being discussed," Abdullayev said.

Also, he said, negotiations are currently underway with the long-term buyers of Azerbaijani gas in Europe. In late March, negotiations will move to the main stage.

Transportation of such a large amount of gas requires reliable transportation infrastructure, capable of expansion. The Trans-Anatolian pipeline (TANAP) will become the one. Its capacity at the first phase will constitute 16 billion cubic meters a year with the possibility of future expansion to 30 billion cubic meters. In the future, this route will be used for the transportation of gas from the eastern shore of the Caspian Sea.

TANAP will form the basis of the Southern Gas Corridor, promoted by Europe and actively supported by Azerbaijan. Options for the delivery of Azerbaijani gas to Europe under long-term contracts are under consideration. Among them are the TAP and Nabucco projects. The final decision on these issues will be made in mid-2013.

SOFAZ was established in 1999 when its assets amounted to $271 million.

The main purposes of the fund are the accumulation of funds and placement of the fund's assets abroad to minimize the negative impact on the economy preventing a 'Dutch syndrome' to ensure savings for future generations and to maintain the current socio-economic standard in the country.

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