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Statoil sells 15.5% share in Shah Deniz to Petronas

Oilfield Technology,


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 Petronas.

The transaction value is US$ 2.25 billion.

"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," commented Lars Christian Bacher, Executive VP for Development and Production International 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 Q2 production from the Shah Deniz field was 38,000 barrels of oil equivalent per day (boepd).

Bacher continued: "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 is located on the deepwater shelf of the Caspian Sea, 70 km southeast of Baku, in water depths ranging from 50 to 500 m. The Shah Deniz partners are currently producing approximately 26 million m3 of gas and 53,000 barrels of condensate per day, approximately equivalent to 225,000 boepd.

Image courtesy of BP plc.


Adapted from press release by Katie Woodward

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/13102014/statoil-sells-interest-in-shah-deniz-to-petronas-1608/

 

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