Tanap's External Financing Could Reach $4bn: Socar

Shareholders in the Tanap gas pipeline may draw $4bn from international financial institutions for the project's construction, Azerbaijan state oil and gas company Socar's president Rovnag Abdullayev said in an interview with the Turkish news agency Anadolu December 15.

“Attracting external funding for Tanap is being negotiated with banks. So far, there are no concrete results, but we assume that the negotiations for the project will attract $4bn,” said Abdullayev.

Negotiations are conducted with the World Bank's International Bank for Reconstruction and Development (IBRD) and Multilateral Investment Guarantee Agency (MIGA), as well as with the Asian Infrastructure Investment Bank (AIIB), the European Investment Bank, and the European Bank for Reconstruction and Development (EBRD), he said. 

Socar president Rovnag Abdullayev (Photo credit: Socar)

There is still a possibility of transferring a 8% stake in the Tanap project to Socar Turkey Energy from the 58% currently held by Socar, said Abdullayev, adding: "We expect that this transfer will be formalized soon."

Tanap's current shareholders are Socar 58%, Turkish state Botas 30% and BP 12%.

Azerbaijan desk