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International oil company Statoil has sold its 15.5% participating interest in the Shah Deniz production sharing agreement to the Malaysian oil and gas company Petronas.
In a deal with total value of $2.25bn, the company also sold its 15.5% share in the South Caucasus Pipeline Company (SCPC), 15.5% share in the SCPC holding company, and 12.4% share in the Azerbaijan Gas Supply Company (AGSC) to Petronas.
The transaction is expected to be closed early 2015, subject to approval from the relevant authorities.
In recent years Statoil has made a number of transactions on the Norwegian continental shelf and internationally.Stratoil’s production from the Shah Deniz field accounted for 38,000 barrels of oil equivalent per day in H1 of 2014.
Lars Christian Bacher, executive vice president for Development and Production International in Statoil,said: “We remain committed to our business in Azerbaijan, which continues to play an important role in Statoil’s international portfolio.”
“Statoil has created significant value by participating in the development of this asset over the years and we are pleased to announce this deal with Petronas.
The divestment optimises our portfolio and strengthens our financial flexibility to prioritise industrial development and high-value growth,” he added.
The Shah Deniz field is operated by BP (28.8%) and the other partners are TPAO (19%), SOCAR (16.7%), Lukoil (10%), Nico (10%). The field is located on the deep water shelf of the Caspian Sea, 70km south-east of Baku, in water depths ranging from 50 to 500m.
Shah Deniz Stage 1 began operations in 2006, and produces approximately 26 million cubic meters of gas and 53,000 barrels of condensate per day – equivalent to around 225,000 barrels of oil equivalent per day.
