Statoil sells its share in Shah Deniz to Malaysian PETRONAS (UPDATE)
Details added (first version posted on 10:59)
Baku, Azerbaijan, Oct.13
By Azad Hasanli - Trend:
Norway's Statoil company has sold its 15.5 percent share in the Shah Deniz project, 15.5 percent share in the South Caucasus Pipeline and 12.4 percent share in the Azerbaijan Gas Supply Company (AGSC) to the Malaysian oil and gas company PETRONAS.
The transaction value is $2.25 billion, a message from the Statoil company said on Oct.13.
So currently, the partners for the development of the Shah Deniz field are: British BP (28.8 percent), Iran's NICO (10 percent), French Total (10 percent), Russia's Lukoil (10 percent) and Turkish TPAO (9 percent), SOCAR (16.7 percent). Earlier, Total sold its share in the project to TPAO and after the completion of the transaction, the share of the latter in the project will be equal to 19 percent.
"The divestment optimizes our portfolio and strengthens our financial flexibility to prioritize industrial development and high-value growth," said Lars Christian Bacher, executive vice president for Development and Production International in Statoil.
Statoil's 2014 second quarter production from the Shah Deniz field was 38,000 barrels of oil equivalent per day.
"We remain committed to our business in Azerbaijan, which continues to play an important role in Statoil's international portfolio," Bacher added.
The transaction is expected to be closed early 2015, subject to approval from the relevant authorities.
Statoil is the participant of such large energy projects in Azerbaijan as the development of the Azeri-Chirag-Guneshli and Shah Deniz field, Baku-Tbilisi-Ceyhan oil pipeline and South Caucasus gas pipeline (Baku-Tbilisi-Erzurum).
The contract for development of the Shah Deniz offshore field, which has proven reserve of 1.2 trillion cubic meters of gas, was signed on June 4, 1996.
On December 17, 2013, a final investment decision was made on the Stage 2 of the 'Shah Deniz' offshore gas and condensate field's development.
The gas to be produced as part of the Stage 2 of the field's development will be exported to Turkey and to the European markets by means of expanding the South Caucasus Pipeline and construction of the Trans-Anatolian Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP).
The first gas will be delivered to Turkey in 2018 and to Europe in 2019.