Equinor has signed an agreement with State Oil Company of Azerbaijan Republic (SOCAR) to divest all its remaining assets in Azerbaijan where it has been present since 1992.
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, an 8.71% interest in the Baku-Tbilisi-Ceyhan (BTC) pipeline and 50% in the Karabagh field.
SOCAR already holds a 25% stake in ACG, a 25% stake in BTC via Azerbaijan BTC Limited, and 50% in Karabagh.
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.
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.
According to Philippe Mathieu , Equinor’s Executive Vice President for International Exploration and Production, 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 on its international portfolio.
“Azerbaijan has been an important part of Equinor’s international portfolio over the past 30 years. 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,” Mathieu said.