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BP to seek 25 pct stake in gas pipelines to Europe

9 November 2012 20:41 (UTC+04:00)
BP to seek 25 pct stake in gas pipelines to Europe

Three pipeline projects will be implemented for the supply of Azerbaijani gas to Europe and BP intends acquiring a share equal to its share in the Shah Deniz project in each of them, the Hurriyet newspaper quotes the company's representative in Turkey Bud Fackrell, who oversees BP Turkey's activities in Azerbaijan and Georgia.

This would mean BP taking a 25 percent stake in all three projects, Fackrell said.
He also said that the company intends to increase its share in the South Caucasus gas pipeline project.

Shah Deniz partners are considering two possible projects for Azerbaijani gas transportation to Europe - Nabucco West and the Trans Adriatic Pipeline (TAP). These are being considered on the same criteria in order to make a decision by May, 2013.

Nabucco-West sees the construction of 1,300 km-long pipeline (Bulgaria: 412 km, Romania 469 km, Hungary 384 km, Austria 47 km) from the Turkish-Bulgarian border to the Austrian Baumgarten. Shareholders are the Austrian OMV, Hungarian FGSZ, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and German RWE.

TAP is designed to transport gas from the Caspian region via Greece and Albania and across the Adriatic Sea to southern Italy and further into Western Europe. TAP's initial pipeline capacity will be 10 billion cubic metres per year expandable to 20 billion cubic metres per year. TAP's shareholders are EGL of Switzerland (42.5 per cent), Norway's Statoil (42.5 per cent) and E.ON Ruhrgas of Germany (15 per cent). The total length of TAP is approximately 800 kilometres. The initial capacity of the pipeline will be 10 billion cubic meters per year, expandable to 20 billion cubic meters per year.

Reserves of the Shah Deniz field are estimated at 1.2 trillion cubic meters of gas.
The contract on development of the Shah Deniz offshore field was signed on 4 June 1996. The contract participants are BP (operator) - 25.5 per cent, Statoil - 25. 5 per cent, NICO - 10 per cent, Total - 10 per cent, Lukoil - 10 per cent, TPAO - nine per cent and SOCAR - 10 per cent.

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