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Statoil out and Petronas in with USD 2.25bn Shah Deniz deal

13th October 2014

Statoil has sold its 15.5 per cent participating interest in the Shah Deniz production sharing agreement, 15.5 per cent share in the South Caucasus Pipeline Company (SCPC), 15.5 per cent share in the SCPC holding company, and 12.4 per cent share in the Azerbaijan Gas Supply Company (AGSC) to the Malaysian oil and gas company Petronas

Statoil out and Petronas in with USD 2.25bn Shah Deniz deal
Statoil’s 2014 second quarter production from the Shah Deniz field was 38,000 barrels of oil equivalent per day

The transaction value is USD 2.25bn.

“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,” said Lars Christian Bacher, executive vice president for development and international production at 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.

Following the divestment, Bacher said: “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.

 

Shah Deniz

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 metres of gas and 53,000 barrels of condensate per day, approximately equivalent to 225,000 barrels of oil equivalent per day.

The Shah Deniz field is operated by BP (28.8 per cent) and the other partners are TPAO (19 per cent), Socar (16.7 per cent), Lukoil (10 per cent), Nico (10 per cent).

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