Category: Business

Turkey to ship 10bn cubic metres of Azerbaijani gas

Turkey to ship 10bn cubic metres of Azerbaijani gas

A senior SOCAR official has briefly outlined agreements between Azerbaijan and Turkey on the purchase, sale and transit of gas.

Elshad Nasirov, vice-president of state oil company SOCAR, said that under one agreement signed last week Turkey will purchase 6.6bn cubic metres of gas from Azerbaijan per annum, while under a framework agreement on gas transit 10bn cubic metres of Azerbaijani gas will be transported to Europe via Turkey, APA reported.

“The transit agreement with Turkey signed on 25 October in Izmir envisages the reconstruction and expansion of the existing gas infrastructure,” Nasirov said. He confirmed that the consortium to export gas to Europe, produced as part of stage two of development of Azerbaijan’s Shah Deniz field, would be selected by the end of the year.

The Nabucco, ITGI and TAP pipeline consortiums have all bid to export Azerbaijan’s gas, while Shah Deniz operator BP has come up with a fourth export option, should none of the three be suitable.

Elshad Nasirov said, meanwhile, that a new consortium would be created to construct a planned pipeline from the Georgian border to Turkey’s western border.

“Membership of the consortium will depend on the choice of the government of Azerbaijan and the desire of the companies participating in the Shah Deniz project, while one of the Turkish companies will be nominated by the Turkish government,” Nasirov said.

He said the choice of route across Turkey for the new pipeline would depend on commercial considerations.

“In order to transport Azeri gas to Europe we must select the best route. We’re not talking only about Shah Deniz, but also about gas extracted from other deposits in Azerbaijan,” APA reported Nasirov as saying.

“In the final analysis, the option that brings the greatest economic benefit will be chosen.”

Shah Deniz costs

The final investment decision on the second stage of development of the Shah Deniz gas condensate field will be made in 2013, Elshad Nasirov said.

He confirmed that the first gas from Shah Deniz II would be produced in 2017.

Meanwhile, BP-Azerbaijan’s chief financial officer, Ian Sutherland, said that BP had increased the cost of developing Shah Deniz, ABC/Fineko reported.

He told a conference in Baku on Wednesday on “The State Oil Fund’s Role in the National Oil Strategy of Azerbaijan” that $23bn was needed to take gas production in Azerbaijan to 26bn cubic metres per year.

Earlier cost estimates for Shah Deniz II did not exceed $22bn.

As part of Shah Deniz II, 16bn cu.m of gas are to be produced per annum. As part of Shah Deniz I, 10bn cu.m are to be produced, although this figure has not been achieved yet.

Elshad Nasirov reminded journalists today that at present Azerbaijan exports 6.6bn cu.m of gas to Turkey, 1.5bn to Georgia, 400m to Iran and 750m to Greece. Azerbaijan exports gas to Russia too.

The Shah Deniz consortium consists of BP (operator, 25.5%) StatoilHydro (25.5%), SOCAR (10%), LUKOIL (10%), NICO (10%), Total (10%), and TPAO (9%).

www.news.az

via Turkey to ship 10bn cubic metres of Azerbaijani gas : Center for Economic and Social Development (CESD).

November 3, 2011
Turkey’s Internet Shopping Grew 52% to $9.5 Billion in 9 Months

Nov. 1 (Bloomberg) — Internet shopping in Turkey grew 52 percent in value, to 17 billion liras ($9.5 billion), in the first nine months of 2011, compared with the year-earlier period, according to Soner Canko, who heads the Interbank Card Center that monitors credit-card spending in the country.

Turkey’s e-commerce is “one of the fastest-growing in the world,” Canko said in an e-mailed statement today. The number of transactions rose 37 percent to 91.7 million in the nine months, he said.

Services accounted for 2.2 billion liras of Internet transactions, followed by air travel, including tickets worth 2 billion liras, and purchases of electronic goods worth 1.5 billion liras, the statement said.

–Editors: Alan Purkiss, Chris Peterson

To contact the reporter on this story: Ercan Ersoy in Istanbul eersoy@bloomberg.net.

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net.

via Turkey’s Internet Shopping Grew 52% to $9.5 Billion in 9 Months – Businessweek.

November 2, 2011
Wyndham Hotel Group Announces Second Wyndham Hotel in Turkey

Written by Ozgur Tore

Sunday, 30 October 2011 03:00

Wyndham Hotel Group announced the signing of an agreement to open a second franchised Wyndham Hotels and Resorts® property in Turkey, the Wyndham Istanbul Kalamis Marina.

Michael-Poynter_Celal-YukselMichael Poynter, Wyndham Hotel Group’s senior vice president and managing director of EMEA, and Mr. Celal Yuksel, Chairman of the Board, Reisler Deri Sanayi Ve Ticaret Limited Siketi, celebrate the signing of Wyndham Istanbul Kalamis Marina, the second Wyndham branded hotel set to debut in Turkey in autumn 2012.

The hotel, owned by Reisler Deri Sanayi Ve Ticaret Limited Siketi, is due to open in autumn 2012.

The signing of the Wyndham Istanbul Kalamis Marina adds to Wyndham Hotel Group’s steady growth in the country, following last month’s announcement that Turkey’s first Wyndham® hotel, the Wyndham Petek Istanbul, is set to debut in 2012. Wyndham Hotel Group currently has seven hotels open and operating in the country under the globally renowned Ramada® brand.

wyndham-kalamis-marina“Turkey plays an important role in our plans to expand Wyndham Hotel Group’s portfolio in Europe and the Middle East and continue providing travellers with first-rate accommodations around the world,” said Eric Danziger, president and chief executive officer of Wyndham Hotel Group. “The opportunities in Istanbul make for an exciting time to introduce a second Wyndham hotel here. With its incredible location and five-star offerings, the addition of Wyndham Istanbul Kalamis Marina further demonstrates our commitment to work with respected partners to bring high-calibre products to key, vibrant markets.”

With stunning views of the Marmara Sea, this five-star property will be located directly across from the exclusive Kalamis Marina on the Asian side of Istanbul. The hotel will feature 211 rooms over five floors, one presidential suite and eight meeting rooms. A large spa and fitness centre will offer 12 treatment rooms, one indoor pool and one rooftop pool. Dining options will include three restaurants: one offering all-day dining and two speciality restaurants. A lobby bar and room service will also be available.

via Wyndham Hotel Group Announces Second Wyndham Hotel in Turkey.

October 31, 2011
The world is watching Turkey

JOOST LAGENDIJK

J.lagendijk@todayszaman.com

The world is watching Turkey

The conference season has started again. Last week there was the eighth Bosporus Conference, organized by the British Council, the Turkish Economic and Social Studies Foundation (TESEV), a Turkish think tank, and the delegation of the European Union in Turkey.

The focus, as in previous years, was on the relations between Turkey and the EU. A couple of days ago, the German Marshall Fund of the United States (GMF), in partnership with the Dutch Ministry of Foreign Affairs and the Economic Policy Foundation of Turkey (TEPAV), invited a selected group of Turkish and foreign specialists to discuss the impact of the Arab Spring on Turkey, the EU and the US. Next week we will see the second Istanbul Forum, hosted by Suat Kınıklıoğlu’s Center for Strategic Communication, in partnership with the GMF, where several panels will be dedicated to the changes in Turkey’s neighborhood and what that means for Ankara’s policy. Finally, on November 17-18, the Turkish Confederation of Businessmen and Industrialists (TUSKON) will gather another mixed group of Turkish and foreign pundits to see how the common interests in bringing Turkey closer to the EU can be rediscovered. I am sure that there are many other meetings that I am not aware of.

It is clear that from a European and American perspective, Turkey, more than ever, is a key player in the region and that analysts all over the world are interested in how to interpret Turkey’s policy, now and in the future.

On the one hand, many wonder how Turkey and the EU will manage to overcome the present stalemate in the official accession negotiations. For understandable reasons, some participants in the conferences I attended are very skeptical about Turkey-EU relations and do not believe there is a way out. Most others admit that there are the difficulties but, at the same time, recognize that there is no interest on the part of the EU nor Turkey to break up. Everybody is curious whether or not recent efforts by the EU to find common ground with Turkey on the Balkans and in North Africa and the Middle East will lead to a renewed sense of common destiny. Overall, the conclusion is that, in order to safeguard their long term economic and strategic interests, Turkey and the EU should try to hang on in the next two years. After the presidential elections in France next year and the parliamentary elections in Germany in 2013, it will be clear whether major internal obstacles inside the EU will be removed. By that time, the EU should also have been able to solve the euro crisis which would allow the union to look beyond its present borders once more.

Much more exciting than the complexities of Turkey’s relations with the EU, are of course the popular uprisings in North Africa and the role Turkey is playing there. The so-called Turkish Model always pops up in those debates. It was interesting to see at the recent GMF event how analysts from different countries came to totally opposing conclusions. While one Arab specialist underlined the importance of Turkey as a source of inspiration for many activists and democrats in the Arab world, another commentator from the region strongly objected to this positive perception. According to him, the Turkish Model is an urban myth, repeated over and over again by a small group of Arabs who want to please their Turkish and European counterparts and prove to them that there is no need to be afraid of radical changes in Egypt or Libya. In the real world, for instance on most Arab websites and blogs, he claimed, Turkey does not figure as a shining example.

Most Western participants seemed to be disappointed after hearing this sobering message. Turkish officials pretended not to be and stressed that Turkey has never had any intention to export its successful mix of a liberal economy, a secular state and a democratic society in the making, to a neighborhood that went through a totally different historical experience during the last 100 years.

I am not so sure whether the mentioned Turkish hands-off policy is completely true. It seems obvious that Turkey has an interest in stable and democratic neighbors that goes beyond finding new markets for Turkish products. The good thing is that we still have quite a lot of time to find out who is right here. We are only at the start of a process in the Arab world that might well take 25 years to crystallize. In other words: many more conferences to go.

via The world is watching Turkey.

October 30, 2011
TAV Airports goes on the market for £1.75bn

Europe’s fastest growing airports group has been put up for sale with a €2bn (£1.75bn) price tag.

By Helia Ebrahimi, and Garry White

9:45PM BST 29 Oct 2011

Along with Atatürk airport in Istanbul, the company also operates airports in Georgia, Tunisia and Macedonia. Photo: Reuters

Turkey’s TAV Airports, which flies 48m passengers every year, has hired Credit Suisse to run a sales process.

TAV – itself a potential bidder for Edinburgh Airport – is likely to attract interest from the owner of Gatwick and London City airport, Global Infrastructure Partners, German airport operator Hochtief, BAA owner Ferrovial, Canada’s Borealis, Australia’s Macquarie, and the infrastructure funds from Goldman Sachs and 3i.

TAV, which is listed in Istanbul, has seen passenger numbers in Turkey surge dramatically in the last year. Last week it said third quarter net profits had increased 81pc to 90.1m (£32m) Turkish lira compared to the same time last year. Overall sales also climbed 42pc to 616.2m lira as the health of the Turkish economy has withstood the buffeting of the eurozone crisis.

Along with the Istanbul airport, the company also operates airports in Georgia, Tunisia and Macedonia – but most of these are very small. The main cash cow remains Istanbul’s Atatürk airport.

In total, the company runs more than 420,000 flights with an aim to have 100m passengers within the next 10 years.

A lot of the value of the airport company rests in how long the concession to run Istanbul airport lasts.

However, potential buyers have suggested that much of the company’s strength lies in its success running non-aviation operations, which have generated increasing amounts of profit. About 57pc of TAV’s overall sales come from non-aviation revenue such as duty free and food and beverage.

Also, there is significant opportunity to expand. Turkey has the potential to double annual passenger capacity at airports to 206m, according to San Sener, TAV’s chief executive.

Potential buyers are currently looking at the sales information with bids not due until next month.

TAV is the latest example of a Turkish asset being sought by foreign buyers in search of double digit growth. In February, Diageo bought raki maker Mey Icki for £1.3bn from private equity firm TPG.

Companies and investors have watched as Turkey has outstripped China in terms of growth. Its hypercharged acceleration saw growth in the first half of 2011 up 10.2pc.

Earlier this month, the business secretary, Vince Cable, led a delegation that included a UK construction company seeking to help build a third bridge over the Bosphorus. At the time he said: “There’s a vast potential that we haven’t tapped until now.”

Recep Tayyip Erdogan, Turkey’s prime minister, is on record as saying he wishes to double the country’s per capita income to $25,000 (£15,508) by 2023.

Turkey is currently the 17th largest economy in the world, with Mr Erdogan seeking to catapult it into the world’s top 10.

However, there have been worries that the economy could be overheating. Turkey’s trade deficit increased 55pc on a year-on-year basis in September to a record $10.41bn as imports surged. This followed an improvement in foreign trade in August.

via TAV Airports goes on the market for £1.75bn – Telegraph.

October 30, 2011
BP Azerbaijan head: Gas agreements between Azerbaijan and Turkey to help open Southern Gas Corridor to Europe

Azerbaijan, Baku, Oct.28 / Trend E.Ismayilov /

The Republic of Azerbaijan and the Republic of Turkey have signed a number of key gas export related agreements to enable Turkey to buy gas from Azerbaijan and to transit Azerbaijan gas through Turkey to Europe, official website of the State Oil Company of Azerbaijan (SOCAR) reports.

According to the report, the documents signed in Izmir (Turkey) on Tuesday, October 25, included an Intergovernmental Agreement (IGA) between the Government of Azerbaijan and the Government of Turkey, Gas Sales Agreements between SOCAR and BOTAS and also between the Azerbaijan Gas Supply Company (AGSC) and BOTAS International Limited (BIL), a Gas Transit Agreement between SOCAR and BOTAS and a Framework Agreement (FA) setting the general terms and conditions for transit of gas sourced from Azerbaijan through the territory of Turkey. The IGA and FA contemplate transit through Turkey either via an upgrade to the existing BOTAS transmission network or via the development of a new-build pipeline across Turkey.

The execution of the documents was witnessed by the President of the Republic of Azerbaijan H.E. Ilham Aliyev and the Prime Minister of the Republic of Turkey Recep Tayyip Erdogan. The documents were signed by the Minister of Industry and Energy of Azerbaijan Natig Aliyev and the Minister of Energy and Natural Resources of Turkey Taner Yildiz, as well as SOCAR President Rovnag Abdullayev, the President for the Azerbaijan-Georgia-Turkey Region of BP and the Operator of Shah Deniz field, Rashid Javanshir and General Manager of BOTAS Fazil Senel.

The agreements provide a legal framework to regulate the sale of Shah Deniz gas to Turkey and its transportation to European markets through Turkey, the website reports.

“We are pleased to finalise the signing of these key agreements between Azerbaijan and Turkey that will lead to Shah Deniz full field development and delivery of Stage 2 gas from Azerbaijan’s giant field in the Caspian Sea to Turkey and European markets. This is a significant step that has been achieved by the two Governments with support from all parties involved including the Shah Deniz consortium. We believe the success of all efforts that have brought us to today’s achievement lies in the close partnership among the three key parties – the Government of Azerbaijan, the Government of Turkey and the Shah Deniz consortium. This partnership has been a key element in everything accomplished so far and will continue to be a driving force to move Shah Deniz to the stage when it will safely and reliably supply Azerbaijan gas to Turkey and Europe,” SOCAR President Rovnag Abdullayev said.

Speaking on behalf of the Shah Deniz consortium Rashid Javanshir, President for the Azerbaijan-Georgia-Turkey Region of BP, said: “We welcome the successful signing of the Shah Deniz gas sales and transit agreements, and the Inter-Governmental Agreement between Azerbaijan and Turkey. We believe these agreements will help open a Southern Gas Corridor to Europe and link Azerbaijan and Turkey with yet another strategic partnership. They will support the continued development of Shah Deniz 2 project towards a final investment decision and development of Turkey as an energy hub for Europe. The signing of these agreements will also allow Shah Deniz to proceed with its European pipeline selection process, and to confirm gas sales agreements with potential customers. ‪

On behalf of the co-venturers we would like to congratulate Azerbaijan and Turkey on reaching these extremely important agreements”.

Shah Deniz Stage 2, or Full Field Development (FFD), is a giant project that will bring gas from Azerbaijan to Europe and Turkey. This will increase gas supply and energy security to European markets through the opening of the new Southern Gas Corridor.

The project is expected to add a further 16 billion cubic meters per year (bcma) of gas production to the approximately 9 bcma from Shah Deniz Stage 1. “It is one of the largest gas development projects anywhere in the world,” the website reports.

Plans for the project include two new bridge-linked offshore platforms; 26 subsea wells to be drilled with 2 semi-submersible rigs; 500 km of subsea pipelines built at up to 550m water depth; additional export capacity in Azerbaijan and Georgia; expansion of the Sangachal Terminal.

“Proposals for the transportation of gas from the Caspian Sea to Europe are now being evaluated by the Shah Deniz consortium with an award expected around the end of the year,” the report says.

Proposals were submitted by October 1 from Nabucco, Trans-Adriatic Pipeline and IGI-Poseidon.

In addition, the Shah Deniz project team are also evaluating a fourth potential export option which would transport gas to markets in South-Eastern Europe through a system of regional existing and future interconnector infrastructure.

The partners in Shah Deniz are: BP Operator (25.5 per cent), Statoil (25.5 per cent), SOCAR (10 per cent), Total (10 per cent), Lukoil (10 per cent), NICO (10 per cent) and TPAO (9 per cent).

via BP Azerbaijan head: Gas agreements between Azerbaijan and Turkey to help open Southern Gas Corridor to Europe – Trend.

October 29, 2011