Equinor and SOCAR (State Oil Company of Azerbaijan Republic) have signed an agreement by which the Norwegian energy industry giant will divest all its remaining assets in Azerbaijan to SOCAR.
The assets comprise a 7.27% non-operated interest in the Azeri Chirag Gunashli (ACG) oil fields in the Azerbaijan sector of the Caspian Sea, 8.71% interest in the Baku-Tbilisi-Ceyhan (BTC) pipeline and 50% in the Karabagh field.
SOCAR already holds a 25.0% stake in ACG, a 25.0% stake in BTC via Azerbaijan BTC Limited, and 50% in Karabagh.
Equinor has been present in Azerbaijan since 1992. ACG, operated by BP, is the largest oilfield in the Azerbaijan sector of the Caspian basin and the BTC pipeline is used to transfer crude oil to the Turkish Mediterranean coast.
“Together with SOCAR and the other partners in ACG, we have created significant value for the partnership and for the Azerbaijani society. SOCAR is well positioned to create further value from the assets for the longer-term and we have appreciated the close collaboration over the years,” said Philippe Mathieu, Equinor's executive vice president for international exploration and production.
Matthie added that Equinor is in the process of re-shaping its international oil and gas business, and the divestments in Azerbaijan are in line with the company’s strategy to focus international portfolio.
The closing of the transaction is subject to the satisfaction of certain conditions including all regulatory and contractual approvals.
Equinor and SOCAR also signed a memorandum of understanding (MoU) to share experience and best practice on low carbon solutions, reducing greenhouse gas emissions and carbon management.