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Turkey to Invest $12b in SP

Turkey plans to invest $12 billion in developing phases 22, 23 and 24 of South Pars gas field, a senior Iranian oil official told Shana.ir.
On the sideline of a joint meeting between Iranian and Turkish oil ministers, Managing Director of National Iranian Oil Company Seifollah Jashnsaz said the talks between the two sides on development of the phases is underway and is expected to be finalized soon.
Referring to vast Iran-Turkey energy cooperation, Jashnsaz stated that Iranian gas supply to Turkey and Turkmen gas export to the country via Iran are among the fields of cooperation.
"Iran's gas export to Turkey is likely to be increased. At present, the rate is at 50mm cm/d," he said.
Turkish Energy Minister Hilmi Guller also said his country is contemplating joint investment with Iran in South Pars gas field.
He added that South Pars installations and the volume of investment made in the region are very good.
"Iran and Turkey have long record of friendship and cooperation in the energy sector which will help bolster mutual ties."
Guler arrived in Tehran at the head of a high-ranking delegation on Saturday. He, who had traveled to Pars Special Economic Energy Zone to tour the South Pars gas field told Shana.ir, "Turkey plans to construct facilities similar to South Pars in Ceyhan."
Guler assessed South Pars facilities as positive and said that the volume of investments made in South Pars is completely satisfactory.
"Iran is Turkey's ally and both countries have for many years been in energy cooperation. Iran is very rich in gas reserves. Both countries have joint projects in the gas sector," added Guler.
That said, he pointed out Turkey's soaring need for gas in recent years, saying Iranian and Turkish officials have held talks on finding ways to increase Iran's gas export to Turkey.
Nabucco Project
Referring to the Nabucco Project (gas pipeline for transfer of gas to European countries via Turkey), Guler stated that Nabucco project is quickly being implemented and it will certainly reach fruition, in the same way that Baku-Tbilisi-Ceyhan, Baku-Tbilisi-Erzurum (Shah Deniz) and Turkey-Greece-Italy pipelines became operational.
"Draft of the contracts has been sent to the Nabucco-related countries and their cooperation is under scrutiny," added Turkey's energy minister.
Guler stated that some European countries are willing to purchase gas from Iran. He commented on the contract according to which Iran will supply Turkey with its gas, and stated, "Iranian officials have promised that no problem will happen in supplying Turkey with Iran's gas, nor are we worried about it."
Guler was accompanied by Turkey's envoy in Iran, managing director of Turkey's National Oil Company, and a member of Turkey's Energy Commission. Guler and his accompanying delegation visited phases 9 and 10, phases 6 to 8, phase 4 and phase 5 of South Pars, Nouri Petrochemical Complex (Borzouyeh), Zagros Petrochemical Complex and Pars Bandari Complex, respectively.
Some officials present at the talks said Turkish officials insisted that Iran reduce the price of its gas exported Turkey."
Meanwhile, deputy oil minister for planning, Akbar Torkan who is also coordinator of Iran's negotiating team with Ankara announced that Iran and Turkey are negotiation on expansion of cooperation between the two countries and the Turk neighbor is demanding more gas from Iran in addition to the present contract. Iran and Turkey signed a Memorandum of Understanding in July 2007 foreseeing joint energy investment, transportation of Iranian natural gas to Europe through Turkey and transportation of Turkmen gas to Europe over Turkey and Iran and enhancement of cooperation in oil trade.

© Iran Daily 2008

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