Austrian oil and gas company OMV AG (OMV.VI) Thursday said it has taken steps to enter the Turkish electricity market with the acquisition of a 60% stake in electricity provider and producer Borasco Elektrik Ueretim Sanayi ve Ticaret A.S. and the construction of a EUR500 million gas-fired power plant.
According to the signed acquisition agreement, Borasco is to build a 890MW gas-fired power plant in Samsun at the Turkish Black Sea coast and will sell the produced electricity on the Turkish market.
The plant will be situated just beside the Turkish terminal of the Russian Blue Stream gas pipeline to ensure safe gas supply to the plant, OMV said.
Construction of the power plant is to begin this year, and start-up of production will commence in late 2010.
OMV's partners at Borasco are Turcap Investments B.V., a subsidiary of the global financial services provider Lehman Brothers Holdings Inc. (LEH), with a stake of 25%, and Turkish Metcap Enerji Yatirimlari San ve Tic A.S. with a 15% stake.
The agreement was approved by the Turkish regulator EMRA on July 30, as well as by the European Union competition authority on Aug. 19, OMV said.