Transaction to sell Chinese oil company’s stake in Azerbaijan closed

Oil&Gas Materials 3 December 2021 17:22 (UTC +04:00)

BAKU, Azerbaijan, Dec.3

By Leman Zeynalova - Trend:

The transaction to sell the 50-percent stake of China National Petroleum Corp (CNPC) in Azerbaijan’s Kursangi and Garabagli oil fields has been closed, a source in the country’s oil and gas market told Trend.

The source noted that CNPC’s stake was acquired by GL LTD, a privately owned ‘start up’ upstream production company based in Azerbaijan.

Currently, the new shareholder is analyzing the fields, after which it will work out an action plan.

China National Oil & Gas Exploration and Development Corp (CNODC) and CNPC (Hong Kong) Ltd (CNPCHK), two subsidiaries of CNPC were holding 25-percent stake in the mentioned fields. Another 50 percent is owned by Azerbaijan’s state oil company SOCAR.

The fields are developed by Salyan Oil company.

The Kursangi and Garabagli fields located in the Kura lowland of Azerbaijan started producing in 1962 and 1960 respectively. The Rehabilitation, Exploration, Development, and Production Sharing Agreement for the Kursangi and Garabagli fields was signed December 15, 1998 by SOCAR, "Frontera Resources," and "Delta/Hess" Ltd and went into effect on April 22, 1999. In May, 2002, the stakes of "Frontera ReSources" and "Delta/Hess" Ltd. in the agreement were purchased by CNPC.


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