BAKU, Azerbaijan, March 17
By Leman Zeynalova - Trend:
Dentons has advised Malaysian Petronas on sale of interests in Azerbaijan’s giant Shah Deniz gas and condensate field, Trend reports with reference to the company.
The agreement, structured as a share and asset sale, was originally entered between Petronas and LUKOIL in October 2021. However, in December 2021, joint venture partners BP, which operates Shah Deniz on behalf of its partners, and SOCAR elected to trigger their pre-emption rights under the joint operating agreement and acquire a share of the interests.
Following the completion of the deal, LUKOIL increased its share in the project from 10 percent to 19.99 percent, BP from 28.8 percent to 29.99 percent and SOCAR from 10 percent to 14.35 percent. Other parties to the project are TPAO (19 percent), NICO (10 percent) and SGC (6.67 percent).
Dentons previously advised Petronas on the acquisition of its interests in the Shah Deniz project from Statoil in 2014.
The existing Shah Deniz facilities’ production capacity is currently about 72 million standard cubic metres of gas per day or more than 26 bcma.
In 2021, the Shah Deniz field produced around 23 billion standard cubic metres (bscm) of gas and more than 4 million tonnes (around 34 million barrels) of condensate in total from the Shah Deniz Alpha and Shah Deniz Bravo platforms.
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