Turkey says its move to acquire a stake in the Shah Deniz natural gas field off the coast of Azerbaijan is part of a regional diversification strategy.
State-owned Turkish Petroleum Corp. agreed to buy the 10 percent share in Shah Deniz owned by French energy company Total for $1.45 billion. The deal is part of an effort by Turkey to lessen its dependence on Russia, the English-language newspaper Today's Zaman reported Sunday.
Russian energy company Gazprom counts Turkey as its second-largest energy importer.
Turkey serves as a major regional energy hub, hosting portions of the second-longest oil pipeline in the world, Baku-Tbilisi-Ceyhan.
Shah Deniz is controlled by a consortium that includes BP and the State Oil Co. of the Azerbaijan Republic. Michael Borrell, a senior vice president for Total's exploration and production business in Europe, said in a statement the sale to TPAO was in line with an effort to focus on "more strategic assets."
First gas from second phase of the Shah Deniz gas field is expected by Europe in late 2018.
