Azerbaijan-Turkey energy co-op to reach its peak with TANAP - Erdogan
"I wish the prolongation of the new contract to benefit our countries,” the letter said. “After signing the Contract of the Century in 1994, Azerbaijani oil has been successfully supplied to the world markets through the Baku-Tbilisi-Ceyhan pipeline since 2006. This project gave an impetus to the development of the whole region, as well as to the strengthening of Azerbaijan's strategic role."
According to the letter, this contract is the most brilliant example of international cooperation.
"I congratulate Azerbaijani President Ilham Aliyev and the country’s people on the signing of a new contract,” the letter said. “Azerbaijan and Turkey, which are one nation, two states, as earlier, will continue to support each other in all spheres, especially in the energy sector.”
The signing ceremony of a new contract on development of the Azeri-Chirag-Gunashli (ACG) block of oil and gas fields was held in Baku Sept. 14.
According to the new contract, the share of Azerbaijan’s profitable oil will be 75 percent, and bonus payments by foreign investors will reach $3.6 billion. The contract for the development of the ACG field was signed in 1994. The proven oil reserves of the block near 1 billion tons.
The shareholders of the project are BP (operator, 35.78 percent), Chevron (11.28 percent), Inpex (10.96 percent), AzACG (11.65 percent), Statoil (8.55 percent), Exxon (8 percent), TPAO (6.75 percent), Itocu (4.3 percent) and ONGC (2.72 percent).
TANAP project envisages transportation of gas from Azerbaijan's Shah Deniz field to the western borders of Turkey. The gas will be delivered to Turkey in 2018 and after completion of the Trans Adriatic Pipeline's construction the gas will be delivered to Europe in early 2020.
TAP is a part of the Southern Gas Corridor, which is one of the priority energy projects for the European Union. The project envisages transportation of gas from Azerbaijan's Shah Deniz Stage 2 to the EU countries.
TAP’s shareholding is comprised of BP (20 percent), SOCAR (20 percent), Snam S.p.A. (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).