Statoil Completes Sale of Shah Deniz Stake to Petronas

Statoil completed the sale of stake in Shah Deniz production sharing agreement to Malaysian energy company Petronas, the company announced Thursday.

The sale involved the transfer of Statoil’s 15.5 percent participating interest in the Shah Deniz production sharing agreement, 15.5 percent share in the South Caucasus Pipeline Company (SCPC), 15.5 percent share in the SCPC holding company, and 12.4 percent share in the Azerbaijan Gas Supply Company (AGSC). The transaction was announced Oct. 13, 2014.

The closure of the transaction follows the satisfaction of all conditions precedent, with an effective date of 1 January 2014, Statoil said.

Following this transaction the State Oil Company of Azerbaijan, SOCAR, will assume operatorship of AGSC and commercial operatorship of SCPC as of 1 May 2015, which have both previously been held by Statoil.

The transaction value is $2.25 billion.

The Shah Deniz gas field was discovered in 1999. It is located on the deep water shelf of the Caspian Sea, 70 kilometres south-east of Baku, Azerbaijan in water depths ranging from 50 to 500 metres. Shah Deniz Stage 1 began operations in 2006.