Taner Yildiz: We have saved BOTAS due to the agreements signed with Azerbaijan

Taner Yildiz: We have saved BOTAS due to the agreements signed with Azerbaijan
# 29 October 2011 12:16 (UTC +04:00)
Baku – APA. Turkey’s Minister of Energy and Natural Resources Taner Yildiz said BOTAS International Limited (BIL), the operator of the Turkish section of Baku-Tbilisi-Ceyhan (BTC) pipeline, was saved from damage due to the gas agreements signed with Azerbaijan, APA reports quoting Haberturk. Taner Yildiz told journalists that BTC Co. accepted the proposal of Ankara to provide BOTAS with cheap natural gas and compensate $100 million damage of the Turkish company in the period of operation of the pipeline.

Minister mentioned that 6 energy agreements had been signed with Azerbaijan, one of them was related to BOTAS. He said so far BOTAS had paid $550 per 1000 cu m of gas needed for the Turkish section of BTC, but according to the new agreement they would purchase gas much cheaper than the market prices. (Haberturk reports that BOTAS will pay $50-55 per 1000 cu m of gas for BTC).

Taner Yildiz said $ 100 million damage of BOTAS would be paid by BTC Co. within two years. Minister said the BTC pipeline will be operated by 2042 and added that according to the previous agreements, BOTAS would undergo $ 1 billion loss at the end of this period, while according to the new agreements, it will have profited $3.7 billion by 2042.
“Moreover, we will not pay $250 million that will be required for the rehabilitation of the pipeline,” he said.

BP has 31.10% share in BTC, SOCAR 25%, Chevron 8.9%, Statoil 8.71%, TPAO (Turkey) 6.53%, Eni 5%, Total 5%, Itochu 3.40%, ConocoPhillips 2.50% and Hess 2.33%.
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