Last update: Tue, 09 Feb 2016 10am

BP to buy stake in Azeri gas pipeline project TANAP

BP has agreed to partner Azeri state energy firm SOCAR and Turkey in the multi-billion dollar Trans-Anatolian natural gas pipeline project (TANAP), industry sources and energy officials told Reuters on Friday. SOCAR, which currently has an 80 percent interest, will sell a 12 percent stake in TANAP, which is estimated to cost around $8 billion to $10 billion and will be built from the Turkish-Georgian border to Turkey's border with Europe.

Turkey owns the remaining 20 percent. TANAP is due to start carrying 16 billion cubic metres (bcm) of gas a year from Azerbaijan's Shah Deniz II field in the Caspian Sea, one of the world's largest gas fields, from 2019 onwards. Sources said BP was even eyeing a further boost to its stake on top of the 12 percent it has agreed. "In the case Statoil and Total turn down the stakes they were offered in TANAP, BP could buy more of a stake and increase its share to 29 percent," a source close to the deal said.

Copyright Reuters, 2013