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Statoil sells 10% of Shah Deniz gas project (Azerbaijan) for US$1.45bn

Statoil has completed the farm down of 10% of its interest of 25.5% in the Shah Deniz Production Sharing Agreement and the South Caucasus Pipeline Company in Azerbaijan to BP (3.33%) and SOCAR (6.67%). The consideration for the sale and transfer of these assets is US$1.45bn.

The divestment that was announced in December 2013, is in line with Statoil’s strategy of portfolio optimisation based on rigid prioritisation of future investments, and capturing value created from a significant gas position.

Statoil portfolio in Azerbaijan consists of 15.5% in the Shah Deniz (SD) project (BP 28.8%, SOCAR 16.7%, Lukoil 10%, NICO 10%, Total 10% and TPAO 9%) and the South Caucasus Pipeline (SCP), 8.56% in Azeri-Chirag-Guneshli (ACG) and 8.71% in Baku-Tbilisi-Ceyhan (BTC) Pipeline. Statoil also holds 20% share in Trans Adriatic Pipeline (TAP) AG which is developing the pipeline for transport of the Shah Deniz gas to European markets.