Hungary's MVM Group acquires stakes in Shah Deniz gas field
Budapest-based MVM Group has entered into an agreement with the Azerbaijani state-owned entity Southern Gas Corridor to acquire a 5% stake in the Shah Deniz offshore gas-condensate field, as announced on June 6.
MVM will also acquire a 4% stake in Azerbaijan Gas Supply Company (AGSC), the exclusive special-purpose vehicle established for the marketing and sale of natural gas produced from the Shah Deniz field.
The Shah Deniz field, discovered in 1999, is one of the world’s largest natural gas-condensate fields. It is located on the deepwater shelf of the Caspian Sea, approximately 70 km southeast of Baku. The Shah Deniz project is an unincorporated joint venture partnership operated by BP.
The Shah Deniz facilities can produce up to 29bn m3 of natural gas and roughly 60mn barrels of condensate annually. Since its inception, more than 218bn m3 of natural gas and 371mn barrels of condensate have been produced from the field.
The extracted natural gas is delivered from the offshore gas-condensate field via pipelines to Azerbaijani, Georgian, Turkish, and European partners based on long-term gas sales and transportation agreements concluded with AGSC.
The transaction is expected to close in Q3 of 2024.