Middle East Economic Survey

VOL. LV

No 32

6-Aug-2012

CASPIAN

Shah Deniz 2 Decision On Pipeline To Be �Purely Economic�

BP CEO Bob Dudley told a press conference in London on 31 July that the Shah Deniz consortium will take its decision regarding the selection of the TAP or Nabucco West pipeline projects for the delivery of Shah Deniz Stage 2 gas to Europe �on purely economic grounds.� He said that the rationale for the decision will relate �primarily to the best tariff level offered by the two competing consortia.� Meanwhile, Shah Deniz partner BP�s position on the two pipelines is in flux. On 29 July the company announced that it has agreed to buy stock in the TAP project in order to make the pipeline�s economics even more solid. However, last week BP Vice-President for Shah Deniz Development Al Cook, who is also heading negotiations with the two pipeline consortia, noted that BP was also considering joining the Nabucco West consortium, following a meeting in Athens with Greek officials (MEES, 30 and 23 July).

© Copyright MEES 2012.