Iran, Russia Oppose Turkey’s Plan to Transfer Gas Contracts

As part of the IMF-backed economic reforms Turkey wants to break up the monopoly of the state-owned pipeline concern Botas. Botas, which sells natural gas imports and wholesale contracts, is supposed to transfer 64 percent of its business to the private sector.

“First Russia and later Iran stated clearly they do now want to transfer their contract to the private sector,” one Turkish government official told Reuters. Both countries have said that they prefer to deal directly with Botas. “The energy companies which want to take these countries’ contracts have recently held lots of meetings, but these countries said they do not plan to transfer their contracts.”

Botas wants to transfer to the private sector contracts covering the purchase of 16 billion cubic meters per year from Russia and Iran as well as liquefied natural gas shipments from Algeria and Nigeria.

The company has extended a bidding deadline for six gas purchase contracts until April 25 after requests from the companies concerned.

Several foreign and local firms have shown interest in taking over the natural gas buying contracts, including Shell, BP, Total and Gazprom.