LUKOIL agreed to acquire a 15.5% stake in Azerbaijan´s Shah Deniz for $2.25 billion

Moscow, October 8 - Neftegaz.RU. LUKOIL announced on October 7 hat the company increased its share in the Shah Deniz gas project in the Azerbaijan sector of the Caspian Sea.
The company agreed to acquire a 15.5% stake from Malaysian Petronas.

LUKOIL's interest in the project will increase from 10% to 25.5%.
BP operates the field with a 28.8% participating interest.

• Turkish TPAO (19%)
• SGC Upstream (6.7%)
• SOCAR (10%)
• Iran’s Naftiran Intertrade Company (NICO, 10%)

The value of the transaction was $2.25 billion, the completion is subject to fulfilment of conditions precedent, including approval by Azerbaijan´s SOCAR.
Vagit Alekperov, President of LUKOIL, commented:

• Around 1000 Russian businesses, incl. LUKOIL, are involved in implementation of the Action Plan for Development of Key Vectors of Cooperation between Russia and Azerbaijan, which was signed in 2018 during the meeting of the 2 national leaders
• Increasing our share in the Shah Deniz project creates new opportunities for synergy in future-oriented economy sectors of our countries
• Over 25 years, LUKOIL accumulated enormous experience in the Caspian region, which we perceive as strategically important, as well as created extensive production and transport infrastructure
• We are proud of the confidence placed in our competences by Caspian countries, which are among leaders of oil and gas production, regarding implementation of high priority international projects

Commercial production at the Shah Deniz gas condensate field began in 2006.
In 2020, Shah Deniz consortium extracted 18.1 bcm of gas and 3.6 million tonnes of gas condensate.

In 2018, the 2^nd stage of the project was launched, with annual production expected to reach 26 bcm of gas and 5 million tonnes of gas condensate.
The gas is sold on the markets of Azerbaijan, Georgia, and Turkey.
Since December 2020, it is also delivered to Europe via a pipeline system.

Author: Elena Alifirova