by Kostis Geropoulos Norway’s Statoil has exited the Shah Deniz field, selling its remaining 15.5% stake in the gas project in Azerbaijan to Malaysia’s Petronas for $2.25 billion. Statoil will retain an 8.56% stake in the Azeri, Chirag and Gunashli oilfield in Azerbaijan (ACG) which is operated by BP and a 20% stake in the Trans Adriatic Pipeline (TAP), which will transport Azeri gas to European markets via Greece and Albania to Italy. Statoil has been selling assets to shore up returns to shareholders, facing rising costs and, in recent weeks, falling oil prices. The deal on October 12 also includes its 15.5% share in the South Caucasus Pipeline and 12.4% share in the Azerbaijan Gas Supply Company (AGSC). Its second-quarter production from the Shah Deniz field was 38,000 barrels oil equivalent per day, Statoil said. Currently, the partners for the development of the Shah Deniz field are: British BP (28.8%), Iran’s NICO (10%), French Total (10%), Russia’s LUKoil (10%) and Turkish TPAO (9%), SOCAR (16.7%). Earlier, Total sold its 10% share in the project to TPAO and after the completion of the transaction, the share of the latter in the project will be equal to 19%. “The divestment optimises our portfolio and strengthens our financial flexibility to prioritize industrial development and high-value growth,” said Lars Christian Bacher, executive vice president for Development and Production International in Statoil. “We remain committed to our business in Azerbaijan, which continues to play an important role in Statoil’s international portfolio,” Bacher added. The transaction is expected to be closed early 2015, subject to approval from the relevant authorities. The Shah Deniz oil field was discovered in 1999 and is about 64 kilometres southeast of Azeri capital Baku. The field began production in 2006. See also: Albania counts on TAP for gas hopes Italy, Greece approve TAP environmental studies
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