The Indian Oil Corporation Ltd. (IOCl) announced plans to participate in the Samsun-Ceyhan crude oil pipeline project on Thursday by acquiring 12.5 per cent of the shares of the Trans-Anatolian Pipeline Company (TAPCO).
Eni SpA currently owns TAPCO (of Italy) and Çalik Enerji AS (of Turkey) on a 50-50 basis.
IOC chairman S Behuria said, "IOC 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. The development of the project is already under way. Indian Oil's participation in the Eni/Çalik joint venture will consolidate this partnership and contribute to the successful completion of this strategic project, which aims at bypassing 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.