Turkey and Azerbaijan to sign energy treaty
Business |
International treaty to approve the memorandum of understanding between Turkey and Azerbaijan for TANAP project was published in Turkey's official gazette Tuesday.
The international treaty to approve the memorandum of understanding between Turkey and Azerbaijan for the Trans Anatolia Natural Gas Pipeline Project was published in Turkey's official gazette Tuesday.
TANAP will award a 30 percent share to a company named by SOCAR, the national oil company of Azerbaijan, after the treaty has been agreed and signed. In accordance with the treaty, the decision should take no longer than 90 days after the signing of the agreement.
As part of the treaty, Turkey and Azerbaijan will agree to extend the date of their gas deliveries and sale agreements until 31 December 2021, which includes Turkey's gas deliveries to SOCAR Turkey and gas sales between BOTAS, Turkey's state-owned crude oil and natural gas pipelines and trading company, and SOCAR Turkey.
Apart from the TANAP, the transfer of a 10 percent partnership share of new oil fields, Zafar-Mashal in the Caspian Sea by SOCAR to an appointed company will take place only after the participation shares in these fields have been settled by both parties.
With the treaty, TPAO, Turkey's national oil and Gas Company, will increase its share in the Shah Deniz gas field and South Caucasus pipeline from 9 percent to 19 percent. The deal will ensure that TPAO will become the largest shareholder after BP.
Turkey is receiving 6.6 bcm of gas annually from the first phase of the Shah Deniz field and will get an additional 6 bcm of gas after 2018, totaling 12.6 bcm. Turkey's national companies will play a key role in the distribution of Azerbaijani natural gas after the completion of the projects.
Anadolu Agency
TANAP will award a 30 percent share to a company named by SOCAR, the national oil company of Azerbaijan, after the treaty has been agreed and signed. In accordance with the treaty, the decision should take no longer than 90 days after the signing of the agreement.
As part of the treaty, Turkey and Azerbaijan will agree to extend the date of their gas deliveries and sale agreements until 31 December 2021, which includes Turkey's gas deliveries to SOCAR Turkey and gas sales between BOTAS, Turkey's state-owned crude oil and natural gas pipelines and trading company, and SOCAR Turkey.
Apart from the TANAP, the transfer of a 10 percent partnership share of new oil fields, Zafar-Mashal in the Caspian Sea by SOCAR to an appointed company will take place only after the participation shares in these fields have been settled by both parties.
With the treaty, TPAO, Turkey's national oil and Gas Company, will increase its share in the Shah Deniz gas field and South Caucasus pipeline from 9 percent to 19 percent. The deal will ensure that TPAO will become the largest shareholder after BP.
Turkey is receiving 6.6 bcm of gas annually from the first phase of the Shah Deniz field and will get an additional 6 bcm of gas after 2018, totaling 12.6 bcm. Turkey's national companies will play a key role in the distribution of Azerbaijani natural gas after the completion of the projects.
Anadolu Agency
