Statoil Sells Stake in Shah Deniz to Petronas

Norway’s Statoil has sold its 15.5% participating interest in the Shah Deniz production sharing agreement and other related assets to Malaysia’s Petronas for $2.25 billion.

‘Statoil has sold its 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) to the Malaysian oil and gas company Petronas. The transaction value is USD 2.25 billion,’ reads a note released by Statoil on Monday.

According to the company, the divestment paves the way to the development of other projects. It also ‘optimises’ Statoil’s portfolio. 

The Shah Deniz field, which was discovered in 1999, is operated by BP (28.8%), TPAO (19%), SOCAR (16.7%), Lukoil (10%), Nico (10%) are the other partners.  

Last month, Enagás joined the Trans Adriatic Project buying a 16% stake in the company, partly compensating for the exit of E.ON and Total, who are selling 9% and 10% respectively. 

INTERCONNECTOR TO GERMANY, UK 

Also on Monday, Norway granted license for electricity interconnectors to Germany and the United Kingdom. 

’In total, this will increase Norway’s interconnection capacity with near 50 percent. Statnett plans commissioning of the cable to Germany in 2018, while the cable to the UK is planned commissioned in 2020,’ reads a separate note.