IndianOil to participate in the Trans-Anatolian Pipeline Project
08 Dec 2006
New Delhi: India's flagship national oil company, Indian Oil Corporation Ltd. (IndianOil), has announced its intention to participate in the Samsun-Ceyhan crude oil pipeline project by acquiring a 12.5-per cent stake in the Trans-Anatolian Pipeline Company (TAPCO). Italy's Eni SpA. and Turkey's alik Enerji AS are currently 50:50 stake-holders in TAPCO.
According to Sarthak Behuria, chairman, IndianOil, "IndianOil feels that its participation in this international project will boost the company's growth beyond its domestic borders and aid in realisation of its vision of becoming a transnational, integrated energy company."
The entire deal package has been agreed in principle and will be submitted soon for the requisite corporate approvals of the respective companies.
However, project development work is already under way. IndianOil's participation in the Eni / alik Joint Venture will consolidate this partnership and contribute to the successful completion of this strategic project, which aims at by-passing the Turkish Straits.
Upon completion, the Samsun-Ceyhan crude oil pipeline will ensure expeditious, safe and economical export of crude oil from the Black Sea to the Mediterranean Sea in an environment friendly manner, thus reducing congestion of tanker traffic in the Bosphorus and Dardanelles Straits. A large quantity of additional crude oil is expected to reach the Black Sea from Central Asia in the next few years.