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17:15 05/03/2014 >> ECONOMY
Financial Times: French Total leaves Shah Deniz because of its unprofitability
French gas- oil company Total is in talks to sell its stake in a huge
gasfield in Azerbaijan after it baulked at the enormous cost of the
project, which would deliver Caspian gas directly to European markets for
the first time, the British paper Financial Times writes.
According to the article, the French major is likely to sell its entire 10
per cent stake in the Shah Deniz field. The move comes just months after
fellow investor Statoil of Norway reduced its stake from 25.5 per cent to
15.5 per cent.
The consortium of shareholders in the field, led by BP, in December
announced a final decision to invest $28bn on the second phase of its
development, one of the largest gas projects in the world, the Financial
Times reports. They also announced plans to build pipelines to ship the gas
3,500 kilometers across Turkey, Greece and Albania into Italy, making the
project a crucial plank of Europe's strategy to diversify energy supplies.
Total's decision was driven by the economics of the project, the people
said, as well as a broader asset sale programme. Including the cost of
building the pipelines, the total price tag for the project is likely to
exceed $40bn.
The article notes that Total remains committed to its other large gas
project in Azerbaijan, Absheron, in which it holds a 40 per cent stake.
However, it sees as "non-core" its 10 per cent interest in the Trans
Adriatic pipeline.
"Likely buyers for Total's stake include Botas, the Turkish state pipeline
company, which "has been very interested for a long time in getting
involved in the upstream end of the project." Socar, the Azeri national oil
company, may also be interested in buying the stake. Statoil's 10 per cent
stake was sold to BP and Socar for $1.45bn," the article reads.
Financial Times adds that Total and BP declined to comment; Socar did not
respond to a request for comment; and Botas could not be reached.
http://www.panorama.am/en/economy/2014/03/05/total-oil-azerbaijan/
Financial Times: French Total leaves Shah Deniz because of its unprofitability
French gas- oil company Total is in talks to sell its stake in a huge
gasfield in Azerbaijan after it baulked at the enormous cost of the
project, which would deliver Caspian gas directly to European markets for
the first time, the British paper Financial Times writes.
According to the article, the French major is likely to sell its entire 10
per cent stake in the Shah Deniz field. The move comes just months after
fellow investor Statoil of Norway reduced its stake from 25.5 per cent to
15.5 per cent.
The consortium of shareholders in the field, led by BP, in December
announced a final decision to invest $28bn on the second phase of its
development, one of the largest gas projects in the world, the Financial
Times reports. They also announced plans to build pipelines to ship the gas
3,500 kilometers across Turkey, Greece and Albania into Italy, making the
project a crucial plank of Europe's strategy to diversify energy supplies.
Total's decision was driven by the economics of the project, the people
said, as well as a broader asset sale programme. Including the cost of
building the pipelines, the total price tag for the project is likely to
exceed $40bn.
The article notes that Total remains committed to its other large gas
project in Azerbaijan, Absheron, in which it holds a 40 per cent stake.
However, it sees as "non-core" its 10 per cent interest in the Trans
Adriatic pipeline.
"Likely buyers for Total's stake include Botas, the Turkish state pipeline
company, which "has been very interested for a long time in getting
involved in the upstream end of the project." Socar, the Azeri national oil
company, may also be interested in buying the stake. Statoil's 10 per cent
stake was sold to BP and Socar for $1.45bn," the article reads.
Financial Times adds that Total and BP declined to comment; Socar did not
respond to a request for comment; and Botas could not be reached.
http://www.panorama.am/en/economy/2014/03/05/total-oil-azerbaijan/