By Nicole Lundeen
VIENNA--Negotiations between the Nabucco pipeline consortium and
the group behind the Shah Deniz II gas field are progressing well
and an agreement is expected by the end of this month, Reinhard
Mitschek Nabucco Gas Pipeline International GmbH's managing
director said Monday.
"We are very close to agreement with the [Shah Deniz]
consortium," Mr. Mitschek said in a conference call with
journalists, adding "we envisage agreement by end of October."
The partners developing the Shah Deniz gas field have been
negotiating with the Nabucco consortium for an equity share in the
pipeline project. Reaching an agreement is seen as an important
vote of confidence in the pipeline as the Shah Deniz partners have
already reached an agreement with the competing pipeline proposal,
the Trans-Adriatic Pipeline. A final decision as to which pipeline
will deliver gas from the Caspian Sea region to Europe is expected
next year.
Mr. Mitschek said that for a mainstream pipeline such as Nabucco
it was important to have both upstream and downstream partners and
therefore he would welcome Shah Deniz involvement in the
pipeline.
The share of Nabucco's Hungarian partner MOL Nyrt. (MOL.BU) has
decreased in the last few weeks by about 2%, he said. Once there is
a positive decision from Shah Deniz in favor of Nabucco, he added,
he is certain that the Hungarian oil company will remain a
committed partner. MOL has been withholding financing from the
pipeline venture.
The director also said that there were ongoing "fruitful"
negotiations with the German Bayern Gas GmbH to join the
consortium.
Write to Nicole Lundeen at nicole.lundeen@dowjones.com