As has been already reported, two partners of the Shah-Deniz project – Norwegian Statoil and French Total – did not want to join the trans-Anadolu gas pipeline (TANAP) project.
Reliable sources told Turan that the Norwegian company has made this decision after the first results of re-evaluation of the TANAP cost. According to BP specialists, construction of 1790-km-long pipeline will cost $12 billion. Before that the project operator – State Oil Company of Azerbaijan (SOCAR) – claimed that cost of the project is estimated at $8-9 billion.
The final cost of TANAP and Trans-Adriatic pipeline (TAP) has not been announced yet. However, world media already reported citing BP that initial cost of this chain is $15 billion. It is planned that construction of TAP, which is 870-km-long, will cost the shareholders $3 billion. However, this sum does not include the costs of purchase of land plots. Thus, it is considered that cost of the Southern Gas Corridor construction will exceed $15 billion.
A source from the Caspian Barrel Oil Studies Centre told Turan that “the more expensive is the gas infrastructure, the less is profit for Azerbaijan and the Shah-Deniz partners.” Therefore, during next year the partners will work hard to make sure that construction starts in 2015 with the optimal conditions both for the customers and the contractors.—0—
Economics
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Elon Musk, co-chair of the U.S. Department of Government Efficiency (DOGE), has outlined a strategy to bring inflation in the United States down to zero by 2026 through aggressive cuts in federal spending. Musk’s plan, which aims to reduce approximately $4 billion in projected daily expenditures, is designed to shrink the federal deficit to $1 trillion by 2026. While the deficit would still be substantial, Musk argues that accelerated economic growth could offset inflationary pressures, ultimately stabilizing the economy.
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The State Oil Company of Azerbaijan (SOCAR) has signed an agreement with Union Energy to acquire a 10% equity stake in the Tamar gas field, one of the largest offshore gas The State Oil Company of Azerbaijan (SOCAR) has signed an agreement with Union Energy to acquire a 10% equity stake in the Tamar gas field, one of the largest offshore gas projects in the Mediterranean, SOCAR said in a statement on Wednesday.projects in the Mediterranean, SOCAR said in a statement on Wednesday.
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On January 30, Azerbaijani President Ilham Aliyev has signed a decree approving the State Program for the Improvement of Transport Infrastructure in Baku and Surrounding Areas for 2025-2030, aiming to modernize the capital’s urban mobility and reduce congestion, the presidential press service said on Tuesday.
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Goldman Sachs has revised its oil price forecasts, raising its projections for Brent and Azeri Light crude by $2 per barrel for both 2025 and 2026, setting the estimate at $78 per barrel. The adjustment reflects expectations of tighter supply conditions driven by geopolitical risks, including U.S. sanctions affecting Russian oil production and potential future restrictions on Iranian crude exports.
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