Azerbaijan’s Oil Fund to participate in share capital of TANAP construction & operation consortium

Baku, Fineko/ The State Oil Fund of Azerbaijan (SOFAZ) will participate in the share capital of the consortium on construction & operation of Trans-Anatolian gas pipeline (TANAP).

SOFAZ executive director Shahmar Movsumov says that the issue of Fund’s participation in TANAP joint stock capital is under discussion today and the matter of participation in the credit part of the project is out of question.

"So far amount of SOFAZ participation in the TANAP capital has not been accorded clearly. Only after the consortium is formed the TANAP shareholders will begin consideration of the matter of raising credit resources to cover the rest part of the project financing. At that, SOFAZ also can also cover the missing part of financing raised from international banks, but I think this will not happen. TANAP is efficient and profitable project, and it will not have problems with attraction of credits," Movsumov said.

The share capital will cover 30% of the TANAP construction cost, and external borrowing will ensure an additional 70% of the cost. Today amogn the TANAP shareholders are the State Oil Company of Azerbaijan (SOCAR), which owns 80%, and Turkish pipeline monopoly BOTAS (20%). SOCAR is ready to provide 29% participation in the project to the third parties at the expense of its equity stake. BP, Statoil (by 12%) and Total (5%) are ready to buy this package.

TANAP pipeline will supply 10-50 bn cu m of gas a year to the EU through  Turkey.


15.11.2012 14:21


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