TPAO to Boost Shah Deniz Stake

TPAO, the Turkish state oil company, will acquire Total SA’s stake in the Shah Deniz gas project.

In a deal signed in Istanbul on Friday, the Turkish state oil company acquired Total SA’s ten per cent stake in Azeri gas project. According to a statement, the transaction is valued at $1.5 billion and is subject to customary approvals. "With this agreement, we will become a partner in all projects in the Caspian," Turkish Energy Minister Taner Yildiz said.

The agreement increases TPAO’s stake in the project to 19 per cent from a previous nine per cent, while Total exits the project. "The sale of our interest in Shah Deniz is in line with Total's active portfolio management and the focus of its investment capability on more strategic assets," said Michael Borrell, Senior Vice-President Continental Europe and Central Asia at Total's Exploration and Production, said in a statement. 

Turkish pipeline firm Botas also signed an agreement at the ceremony with Azeri state oil company SOCAR to raise its stake in the Trans-Anatolian natural gas pipeline project (TANAP) to 30 per cent from 20 per cent. 

TANAP, developed by Azerbaijan's state energy company SOCAR in collaboration with Botas and TPAO, will deliver Shah Deniz gas to the Turkish-Greek border from eastern Turkey. The yearly volume of gas supplied from the Shah Deniz gas field will be 16 billion cubic meters annually, with Turkey diverting 6 billion cubic meters for domestic consumption and rest to Europe.