Tuesday, 26 March 2013

Caspian: Sofaz confirms Tanap funding

The State Oil Fund of Azerbaijan (Sofaz) has confirmed that it will become a shareholder in the Trans-Anatolian Pipeline (Tanap) project. Socar's president Rovnag Abdullaev said at the start of March that although the Azerbaijani state would – as earlier confirmed – retain 51% in the consortium, some of Socar's stake will be taken by Sofaz. The exact proportion has yet to be determined.

It had been widely reported that Sofaz would fund the majority of the pipeline, as it has funded previous large-scale infrastructure projects such as the Baku-Tbilisi-Ceyhan pipeline and the Baku-Tbilisi-Kars railway. Exactly how much Sofaz – as opposed to Socar, Turkish companies or the IOCs taking a stake – will contribute is not yet clear. Tanap is expected to cost $5 billion–7 billion.

For more news and expert analysis about the Caspian region, please see Caspian Focus.

© 2013 Menas Associates

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