PETRONAS talks on Shah Deniz stake sale to LUKOIL

Oil&Gas Materials 11 October 2021 10:01 (UTC +04:00)
PETRONAS talks on Shah Deniz stake sale to LUKOIL

BAKU, Azerbaijan, Oct. 11

By Leman Zeynalova - Trend:

The sale of its stake in Azerbaijan’s Shah Deniz gas and condensate field to Russia’s LUKOIL follows PETRONAS’ continuous review of its business portfolio to ensure a better fit in its growth strategy in the increasingly evolving energy landscape, the company told Trend.

On October 7, PJSC LUKOIL announced conclusion of an agreement on acquiring 15.5 percent interest in the Shah Deniz natural gas project in the Azerbaijan sector of the Caspian Sea from PETRONAS.

The value of the transaction will amount to $2.25 billion, and the completion is subject to fulfilment of conditions precedent, including approval by SOCAR, the State Oil Company of the Azerbaijan Republic.

Following completion of the sale, LUKOIL's interest in the project will increase from 10 percent to 25.5 percent. The other parties to the project are bp (operator, 28.8 percent), TPAO (19 percent), SOCAR (10 percent), NICO (10 percent), and SGC (6.7 percent).

"Around thousand Russian businesses, including LUKOIL, are involved in implementation of the Action Plan for Development of Key Vectors of Cooperation between Russia and Azerbaijan, which was signed in 2018 during the meeting of the two national leaders. Increasing our share in the Shah Deniz project creates new opportunities for synergy in future-oriented economy sectors of our countries. Over 25 years, LUKOIL accumulated enormous experience in the Caspian region, which we perceive as strategically important, as well as created extensive production and transport infrastructure. We are proud of the confidence placed in our competences by Caspian countries, which are among leaders of oil and gas production, regarding implementation of high priority international projects," said Vagit Alekperov, President of PJSC LUKOIL.


Follow the author on Twitter: @Lyaman_Zeyn