Turkey is in talks with Total SA and Statoil ASA to increase its stake in Azerbaijan’s Shah Deniz natural gas project, according to a top government official.
State explorer Turkiye Petrolleri AO is seeking to boost its stake from 9 percent now as the BP Plc-led Caspian project enters its second development phase, Metin Kilci, undersecretary at the Ministry of Energy, said today in Ankara. The amount of the increase will depend on the price, he said.
Turkey’s state pipeline company, Botas Boru Hatlari Ile Petrol Tasima AS, will also start negotiations to increase its share in the Trans-Anatolian pipeline project, which will transport Shah Deniz gas through Turkey, Kilci said.
Turkey wants to diversify supplies away from Russia and Iran, which together accounted for more than half of all its gas imports last year. The European Union is also looking to Caspian projects to help ease its reliance on Russia, which provided 30 percent of its imports last year.
Statoil and Total’s press offices declined to comment when contacted by phone and e-mail about talks with TPAO.
Statoil in December divested a 10 percent stake in Shah Deniz and the South Caucasus Pipeline for $1.45 billion to BP and the Azeri state oil producer to reduce costs. The Norwegian company retains 15.5 percent while Total of France holds 10 percent.
Shah Deniz’s second development phase, estimated to cost $28 billion together with the SCP, will start producing in 2018.
The fuel will travel to Turkey’s eastern border via the SCP before being transferred to the Trans-Anatolian Pipeline.
Azerbaijan accounts for less than 16 percent of the country’s gas-import contracts, according to Botas. Total imports stood at about 38.5 billion cubic meters last year, according to Botas estimates.
Turkey is seeking to reduce energy import costs, of about $60 billion in 2012, exacerbating a current account deficit that the government sees as the economy’s “greatest vulnerability.”
“Turkey will be able to import more of its own gas for domestic use after these transactions are closed,” Kilci said.
ANN.Az
