Statoil completes sale of 15.5% share in Shah Deniz to PETRONAS
Statoil has closed the sale of its 15.5% participating interest in the Shah Deniz production sharing agreement to the Malaysian oil and gas company Petronas.
The sale involved the transfer of Statoil’s 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).
Following this transaction the State Oil Company of Azerbaijan, SOCAR, has assumed operatorship of AGSC and commercial operatorship of SCPC, which have both previously been held by Statoil.
The transaction value is USD 2.25 billion.
Shah Deniz gas field is the largest natural gas field in Azerbaijan. It is situated in the South Caspian Sea, off the coast of Azerbaijan, approximately 70 km southeast of Baku, at a depth of 600 m. The field covers approximately 860 km². The Shah Deniz gas and condensate field was discovered in 1999.
The Shah Deniz field is operated by BP which has a share of 28.8%. Other partners include TPAO (19%), Socar (16.7%), Petronas (15.5%), Lukoil (10%) and NIOC (10%).
Statoil’s 2014 second quarter production from the Shah Deniz field was 38,000 barrels of oil equivalent per day.
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