BAKU Nov 6 Azerbaijan's $33-billion state oil
fund is to help finance the $8 billion Trans-Anatolian natural
gas pipeline project (TANAP) to take Azeri gas to Turkey and to
markets in Europe, the head of the fund said on Tuesday.
Turkey has a 20 percent stake in TANAP, while Azerbaijan's
state oil company SOCAR holds 80 percent. SOCAR offered BP
, Statoil and Total to buy 29 percent
of the total from its stake in September.
Construction of the TANAP pipeline, which will be built from
the Turkish-Georgian border to Turkey's border with Europe, is
expected to start at the end of 2013 and the project's first
phase is seen ready at the end of 2017 or early 2018.
TANAP is set to take some 10 billion cubic metres (bcm) of
gas a year from Azerbaijan's Shah Deniz II field to Europe,
while Turkey, which aims to cut its dependence on Russian gas,
will get 6 bcm. The project is designed to be expandable to 30
bcm and ultimately 60 bcm a year.
The head of Azerbaijan's state oil fund Shakhmar Movsumov
said it also planned to co-finance several other major energy
projects in the oil-rich country next year, including
construction of a new oil refinery, a gas liquefaction plant and
a chemical plant.
"The state oil fund will start financing the TANAP project
in 2013. Besides that, it will participate in financing of an
oil-gas-chemical complex construction project," Movsumov said in
parliament during a discussion of the state budget draft for the
The state oil fund holds proceeds from oil contracts, oil
and gas sales, transit fees and other revenues. It has been used
to finance social spending and infrastructure projects.
Movsumov did not specify how much money the fund planned to
invest into projects though the preliminary total cost of TANAP
was estimated at $20 billion.
The oil fund's 2012 revenue till Oct. 1 was 10.1 billion
manats (12.6 billion), while its spending was 7.5 billion
Movsumov said on Tuesday the fund's total spending next year
would reach 13.6 billion manats, while its revenues were set to
be 11.8 billion manats.