BP launches $28 billion Azerbaijan gas pipeline

BP said the giant Shah Deniz field holds about one trillion cubic meters of natural gas. (AFP)
Updated 02 July 2018
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BP launches $28 billion Azerbaijan gas pipeline

BAKU, Azerbaijan: British petroleum giant BP has started operating a $28-billion pipeline in Azerbaijan to supply gas to Turkey and elsewhere in Europe, the company said Monday.
The “Shah Deniz 2” development is “the starting point for the Southern Gas Corridor series of pipelines that will for the first time deliver natural gas from the Caspian Sea direct to European markets,” BP said in a statement.
The pipeline bypasses Russia and has been supported by the European Union, which is keen to reduce Europe’s energy dependence on Moscow.
“Together with the Southern Gas Corridor pipeline system, Shah Deniz 2 will deliver significant new energy supplies to Europe, further diversifying its sources of energy,” said BP group chief executive Bob Dudley, quoted in the statement.
The giant Shah Deniz field holds about one trillion cubic meters of natural gas, according to BP estimates. The first phase of the its exploration started in 2006.


Kuwait Projects Co. hires Goldman Sachs for sale of OSN — sources

Updated 49 min 40 sec ago
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Kuwait Projects Co. hires Goldman Sachs for sale of OSN — sources

DUBAI: Kuwait Projects Co. (KIPCO), the Gulf state’s largest investment company, has hired Goldman Sachs to advise it on the sale of its majority stake in pay-television operator OSN, sources familiar with the matter told Reuters.
OSN, which this year signed the first partnership deal in the region with Netflix, posted a 71 percent drop in income in the three months to Sept. 30, according to KIPCO’s latest financial results.
KIPCO and Goldman Sachs declined to comment.
KIPCO said in the results, released last week, that the company’s board had approved initiating a plan to divest its 60.5 percent equity interest in Panther Media Group, also known as OSN, and had engaged an international investment banker for the purpose. It did not disclose the name of the banker.
With the rights to broadcast into countries across the Middle East and North Africa, OSN has more than 180 channels, according to its website. Its other shareholder is Mawarid Group.
OSN faces subdued demand in its core markets due to piracy, geopolitical factors and fiscal reforms by governments which have led to sizeable expatriate populations leaving some of its core markets, said Anuj Rohtagi, director of group financial control at KIPCO in KIPCO’s third-quarter earnings conference call on Nov. 15. He added OSN was taking action to cut costs and attract new customers.
It is not the first time KIPCO has explored offloading at least some of its stake in OSN. In 2014, it said it planned to start the process for an initial public offering of OSN shares.