This news is classified in: Traditional Energy Oil and Gas
Oct 13, 2014
Statoil has sold its 15.5% participating interest in the Shah Deniz production sharing agreement, 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 the Malaysian oil and gas company PETRONAS. The transaction value is USD 2.25 billion.
The Shah Deniz field in the Caspian Sea. (Photo: Shahin Abasaliyev)
“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,” says Lars Christian Bacher, executive vice president for Development and Production International in Statoil.
In recent years Statoil has strengthened its resource base and industrial opportunity set. To prioritise high potential future developments, Statoil has realised substantial value from transactions on the Norwegian continental shelf and internationally. This portfolio optimisation continues to increase financial strength and flexibility to deliver on our strategy for high-value growth. Statoil’s 2014 second quarter production from the Shah Deniz field was 38,000 barrels of oil equivalent per day.
Statoil’s 2014 second quarter production from the Shah Deniz field was 38,000 barrels of oil equivalent per day.
Lars Christian Bacher, executive vice president for Development and Production International in Statoil.
Following the divestment, Bacher says, “We remain committed to our business in Azerbaijan, which continues to play an important role in Statoil’s international portfolio.”
The effective date is 1 January 2014. The transaction is expected to be closed early 2015, subject to approval from the relevant authorities.
The Shah Deniz field was discovered in 1999. It is located on the deep water shelf of the Caspian Sea, 70 kilometres south-east of Baku, in water depths ranging from 50 to 500 metres. Shah Deniz Stage 1 began operations in 2006. The Shah Deniz partners are currently producing approximately 26 million cubic meters of gas and 53,000 barrels of condensate per day, approximately equivalent to 225,000 barrels of oil equivalent per day.
