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SOFAZ to Get a Stake in TANAP

The State Oil Fund of Azerbaijan will receive a share in the Trans-Anatolian Gas Pipeline Project (TANAP), as head of SOCAR Rovnag Abdullayev told journalists.

According to Abdullayev, the State Oil Fund will receive dividends on the basis of equity participation in the project, of which SOCAR intends to retain 51 percent.

"The ratio of participation of the State Oil Fund in the project is not yet determined. It is being discussed," Abdullayev said.

The head of SOCAR noted that negotiations are currently underway with long-term buyers of Azerbaijani gas in Europe, and that by late March negotiations will move to the main stage.

Transportation of such a large amount of gas requires reliable infrastructure and the capability for expansion, which is where TANAP comes into place. Its capacity in the first phase will constitute 16 billion cubic meters a year with the possibility of future expansion to 30 billion cubic meters. In the future, this route will be used for the transportation of gas from the eastern shore of the Caspian Sea.

TANAP will form the basis of the Southern Gas Corridor, promoted by Europe and actively supported by Azerbaijan. Options for the delivery of Azerbaijani gas to Europe under long-term contracts are being evaluated.

SOFAZ was established in 1999 when its assets amounted to $271 million. The main purposes of SOFAZ are the accumulation and placement of the fund's assets abroad to minimize the negative impact on the economy and prevent a "Dutch syndrome," while ensuring savings for future generations and maintaining the current socio-economic standard in the country.

Source: Trend

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