Statoil sells Shah Deniz stake to Petronas

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 USD 2.25 billion.

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.

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.

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