4 bln USD will be attracted to TANAP project

Baku. 16 December. REPORT.AZ/ The talks with banks to attract funds for Trans-Anatolian Pipeline (TANAP) project are underway. According to unspecified information, it is expected to attract 4 bln USD to the project. Report informs, Rovnag Abdullayev, President of State Oil Company of Azerbaijan Republic (SOCAR) told Anadolu agency.

SOCAR President noted that overall investment to the project will exceed 18 bln USD upon completion. R.Abdullayev told that SOCAR trusts Turkey and Turkish economy and their investments reflect this trust: “We believe Turkey, with its fundamental statehood traditions, strong democracy and fast growing economy, will take its place among leading countries of the region and world. After short period Turkey will strengthen its global position as energy bridge. We received vast support and interest from Turkey for our investments. I cordially believe that this cooperation will continue in the future within concept ‘one nation, two state’.

Talking about works in STAR oil refinery, he said that 80% construction of the plant, which took 3.7 ln USD investment, completed. The plant will start operations in 2018: “After construction of appropriate infrastructure for installation of mechanical machinery and equipment, we started to deliver heavy equipment in December 2015, and finished in mid-2016. In last months of 2016 and during 2017 we will continue to prepare storehouses, mount machinery and equipment. We expect to start utilization of ‘STAR’ oil refinery in 2018. Our overall investments in Turkey will exceed 18 bln USD upon completion of the project”. 

SOCAR President also told about TANAP: “We continue talking with foreign banks for continuation of foreign funding of TANAP. We expect that we will be able to attract 4 bln USD for the project in this stage. We continue negotiations with International Reconstruction and Development Bank, the member of World Bank Group, Multilateral Investment Guarantee Agency, Asian Infrastructure Investment Bank, European Investment Bank and European Reconstruction and Development Bank for funding the project. Azerbaijani government thinks to transfer 8% from 58% shares of its stakeholder in TANAP ‘Southern Gas Corridor’ to SOCAR Turkey. We started talks with our partners over this issue. We expect this transfer to be completed soon”.

R.Abdullayev told that SOCAR Turkey wants to have stronger position in this important project aimed at provision of energy to Europe: “The project initially envisaged to deliver annually 16 bln CBM of gas, will increase its capacity up to 31 bln CBM with rise of our production capacity. Possibility to increase capacity of pipeline has been planned in accordance with this. We intend to sell gas to Turkey in mid-2018, and to European Union in early 2020. Thanks to our investments, Azerbaijan in mid- and long term, will become second largest supplier of Turkey, and one of main suppliers of Europe. Producers, transporters and end users will benefit from this.

SOCAR President added that the company represented by him, through its investment strategy, significantly increases its property and financial power: Goldman Sachs owns 30% of ‘Petlim’ port and 13% of ‘SOCAR Turkey Energy’ JSC. Now our main objective is to fulfil our part arising from this partnership. We closely follow market conjuncture. We assess new opportunities. SOCAR’s assets attract attention of international financial and investment companies.