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Malaysia's Petronas acquires Stake in Shah Deniz Gas Project from Statoil


Norway’s largest energy firm Statoil ASA, announced the sale of its 15.5 percent share in the Shah Deniz field which is located on the deep water shelf of the Caspian Sea, to the Petroliam Nasional Berhad (Petronas), Malaysian oil and gas company for $2.25 billion.

Statoil has sold its 15.5 percent participating interest in the Shah Deniz production sharing agreement, 15.5 percent share in the SCPC holding company, 12.4 percent share in the Azerbaijan Gas Supply Co and 15.5 percent share in the South Caucasus Pipeline Company.

As Statoil seeks to raise returns for shareholders with stagnant energy prices and rising costs, it has reduced investment plans and scrapped production-growth targets. Since 2010, Statoil has shelled out its assets from the North Sea to Azerbaijan for over $20 billion.

Lars Christian Bacher, executive vice president, for production and development International in Statoil said that the divestment optimizes their portfolio and strengthens their financial flexibility to prioritise industrial development and high-value growth.

According to Statoil, in recent years, the company has strengthened its industrial opportunity and resource base.

For future developments, the company has realized substantial value from transactions on the Norwegian continental shelf as well as internationally.

Stavanger-based Statoil considers that this portfolio optimization continues to increase flexibility to deliver on its strategy for high-value growth and financial strength.

The Shah Deniz field is operated by BP with a 28.8 percent stake. The other partners are SOCAR with 16.7 percent, TPAO with 19 percent, and Nico and Lukoil with 10 percent each. Statoil’s production from the Shah Deniz field was 38,000 barrels of oil equivalent per day in the second quarter of 2014.

Statoil said it remains committed to its business in Azerbaijan, which continues to play an important role in Statoil's international portfolio. The deal is subject to regulatory approval and is expected to be closed by early 2015.

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