CEO: Concluding agreements with Shah Deniz partners indicates Nabucco West’s competitiveness
The conclusion of the agreements between Nabucco and the partners on the Azerbaijani Shah Deniz gas condensate field's development indicates the success of the negotiation process between the sides, CEO of Nabucco Gas Pipeline International GmbH Reinhard Mitschek said in his statement.
Mitschek welcomed the signing of Cooperation Agreement and Equity Option and Funding Agreement between Nabucco shareholders and Shah Deniz partners SOCAR, BP, Statoil and Total, and mentioned that the close negotiations between the parties have being held since the designation in June 2012 of Nabucco West as the Central European delivery option.
"This important achievement is a clear indicator of the potential success of this process and of the commerciality and competitiveness of Nabucco West in offering convincing business opportunities in the promising market area of South East Europe and Central Europe," Mitschek said.
Cooperation Agreement and Equity Option and Funding Agreement were signed between Nabucco Sharehokders and Shah Deniz partners in Vienna on Friday.
Equity Option and Funding Agreement, in particular, envisages joint funding of the development costs of the Nabucco West up to the pipeline selection decision for Shah Deniz' European export route, as well as the granting to Potential Investors of equity options of 50 percent to participate as shareholders in NIC following a positive pipeline selection decision by the Shah Deniz Consortium in favour of Nabucco West.
Nabucco West is a short-cut version of Nabucco project, which envisages construction of the pipeline from the Turkish-Bulgarian border to Austria.
The project's current shareholders are Bulgarian Energy Holding, Romanian Transgaz, Turkish Botas, Austrian OMV, German RWE and Hungary's FGSZ, and each of them holds 16.67-percent share.