http://www.todayszaman.com/tz-web/detaylar.do?load=detay&link=123041
Turkey to earn $600 million from Iran natural gas
The details of a July natural gas exploration and transportation agreement between
Turkey and Iran, over US objections, are now becoming clearer.
According to the agreement Iran will pay 20 percent of profits from the natural gas
extracted from the South Pars Basin to Turkey in compensation for exploration costs.
The Turkish Petroleum Corporation (TPAO) will invest around $3 billion in the region.
The project, forecast to be completed in seven years, will claim $3.6 billion from Iran with
the addition of the 20 percent profit margin. Iran will pay this sum in installments lasting from
eight to 10 years, either in cash or in natural gas. Negotiations for the project will continue
until February 2008. The final agreement is expected to be signed in April 2008, with groundbreaking
at the end of the year. A TPAO authority, who spoke on condition of anonymity, said Iranian officials
had offered a 15 percent profit margin.
"We expected 25 percent, and we made a deal on 20 percent," he said. The agreement between the
two countries also covers the transportation of 35 billion cubic meters from Turkmenistan to Europe.
With this agreement, which allows Turkey to export Iranian and Turkmen gas to Europe, the exploration
and extraction of three natural gas fields in the South Pars Basin, which has 14 trillion cubic meters of reserves,
will be given to Turkey. The TPAO will operate these fields and has the ability to produce 56 million cubic meters
of gas daily. On an annual basis, the company has a production capacity of 20 billion cubic meters.
After a visit of Energy Minister Hilmi Güler to Iran in the weeks following the gas agreement, another
memorandum of understanding was signed between the two countries on electricity. With this memorandum,
the construction of three thermal power plants and one hydro-power plant was decided. These plants are
estimated to be capable of generating 6 billion kilowatt hours of electricity in total. The locations of the power
plants will be determined at a later date.
The agreement was not welcomed by the US, which is trying to expand sanctions on Iran. There is a
probability that this agreement will harm Turkish foreign policy due to US objections. The energy minister's
determination vis-à-vis the agreement has caused widespread debate. According to energy experts, the
reliability of Iran as an energy supplier is questionable.
Turkey insists on joint company for gas transport to Europe
Turkey and Iran, however, could not come to an agreement on the transportation of gas to Europe. Turkey
does not accept Iran's "let us to pay the transit fees for the transportation of gas to Europe" offer. The Turkish
Energy Ministry insists on establishing a joint company and selling the gas together. "They have to accept our
offer because without us, they cannot sell gas to Europe," an official from the ministry said. According to Turkey's
offer, the state-owned Turkish Pipeline Company (BOTA?) and Iran would establish a firm to install pipeline from
the Pars region to the Turkish border. Another joint company would purchase this gas and sell it to Europe.
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Den energi politiske fremtid der begynder at tegne sig på forsynings siden for Europa, gør
det mere og mere klart at vi skal være gode venner med Rusland og Iran, hvis Europa ikke
skal sidde sultne i mørke og fryse, og valget imellem at tillade et Iran der vil være i stand til at producere
kernevåben, eller at intervenere bliver stadig mere kompliceret.
Jan Rasmussen