STRENGTH IN NUMBERS

Turkey 2014 | ENERGY | INTERVIEW

TBY talks to Bud Fackrell, President of BP Turkey, on the Shah Deniz II consortium, the company's goals for the country, and its 100th anniversary here.

Bud Fackrell
BIOGRAPHY
Bud Fackrell has a BS in Petroleum Engineering from the University of Wyoming, and has 37 years of experience in the oil and gas industry, mainly overseas in executive roles in upstream and midstream areas. He was appointed President of BP Turkey in April 2012.

As the leader of Shah Deniz II consortium, how do you see this project, and the Southern Gas Corridor, affecting Turkey and its role in the regional energy sector?

Turkey has a key role in the realization of the Southern Gas Corridor, which will provide gas directly from the Caspian to Europe for the first time in history. It is one of the largest energy projects in the world, and from end-to-end will require an investment of more than $45 billion. The pipeline network will be over 3,500 kilometers. The “first mover" of this massive project is the Shah Deniz II development in Azerbaijan. Gas from this field, developed by BP and its partners, is expected to provide 16 billion cubic meters (bcm) per year of gas to millions of consumers in Georgia, Turkey, Greece, Bulgaria, and Italy. This is enough gas to meet the needs of every capital city along the Southern Gas Corridor more than twice over. The first gas delivery is targeted for late 2018, with supplies to Georgia and Turkey, while gas deliveries to Europe are expected just over a year after the first gas is produced offshore in Azerbaijan. Shah Deniz II gas will be transported in and across Turkey through the new Trans-Anatolian Pipeline (TANAP), which will be a key part of the Southern Gas Corridor. BP expects to exercise its option to take 12% equity in TANAP in 2014. The Southern Gas Corridor is an important project for energy security and diversity in both Turkey and Europe.

What are BP Turkey's goals and targets for 2014?

Our priorities include growing our downstream businesses in Turkey, such as our fuel value chains, lubricants, and aviation fuel, as well as working with our partners on the upstream side to implement improvement projects on the Baku-Tbilisi-Ceyhan (BTC) pipeline, and enable the realization of massive projects, such as the Southern Gas Corridor. Our fuels business has a steady growth agenda, opening new retail stations and entering new provinces. BP's lubricants business also currently has a leading market share in automotive lubricants with its Castrol brand, and we have plans to strengthen this. Our lubricants plant in Gemlik currently exports Castrol and BP lubricants to 11 different countries. On the aviation front, Air BP has increased its footprint in Turkey, having a presence in 11 airports in the country. On the BP-operated BTC pipeline, we are implementing several major projects that will sustain the life of the pipeline for decades. And on the Southern Gas Corridor project, we are now in the execution phase, which means we are moving from sheets of paper to sheets of steel. We have started the construction works, with detailed engineering, drilling, and preliminary construction activities already underway.

BP recently celebrated its 100th anniversary in the country. What is your long-term vision for BP Turkey?

We have been in Turkey for over 100 years, contributing to the country's economy and energy sector. Our vision is to be here for many more years, continuing to make a difference and meeting Turkey's energy needs. Future demand for energy is growing globally, and even faster growth is forecasted for emerging economies such as Turkey. Our investments will continue. The BP-operated Shah Deniz field currently meets around 15% of Turkey's gas demand and, with Shah Deniz II, this could rise to 25%. Development of the new TANAP will bring substantial investment and up to more than 10,000 new jobs to Turkey. By increasing Turkey's capability to transport affordable, secure, and sustainable gas, Shah Deniz II and TANAP will support the development of Turkey as Europe's southern energy hub and a significant provider of European energy security.