Friday 29 Mar 2024
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(Oct 13): Statoil ASA, Norway’s biggest energy company, will sell its 15.5 percent stake in the Shah Deniz field in Azerbaijan to Malaysia’s Petroliam Nasional Bhd. for $2.25 billion.

The transaction includes sales of the interest in the Shah Deniz production-sharing agreement, the share in the South Caucasus Pipeline Co. and the holding company, and its 12.4 percent stake in the Azerbaijan Gas Supply Co., the Stavanger- based company said in a statement.

“The divestment optimizes our portfolio and strengthens our financial flexibility to prioritize industrial development and high-value growth,” said Lars Christian Bacher, executive vice president for development and production international, in a statement.

Statoil has scrapped production-growth targets and reduced investment plans as it seeks to raise returns for shareholders amid rising costs and stagnant energy prices. The state- controlled company has sold assets from the North Sea to Azerbaijan for more than $20 billion since 2010.

Statoil’s second-quarter production from the Shah Deniz field was 38,000 barrels of oil equivalent a day. The transaction is expected to close in early 2015, subject to approval from the relevant authorities, according to Statoil.

Petronas, Malaysia’s state-owned energy company, has exploration and production ventures in at least 22 countries in Southeast Asia, the Middle East, Central Asia, Latin America and Africa, accounting for almost a quarter of its total oil and gas reserves, it said on its website.

The company last month announced it signed agreements with Mexico and Argentina to expand its operations in the region. Petronas said this month it may delay construction of its C$10- billion ($8.9 billion) Canadian liquefied natural gas project past 2030 unless proposed taxes are lowered.

 

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