BAKU, Azerbaijan, June 11. The acquisition of a share by Hungarian MVM Group in Azerbaijan’s Shah Deniz gas and condensate field will significantly enhance the company’s overall energy portfolio in several ways, Károly Mátrai, CEO of MVM Group, said in an exclusive interview with Trend.
On June 5, 2024, MVM Group entered into a sale and purchase agreement with the Azerbaijani state-owned entity Southern Gas Corridor CJSC for the acquisition of a 5 percent stake in the Production Sharing Agreement for Shah Deniz offshore gas-condensate field in the territory of Azerbaijan and a 4 percent stake in Azerbaijan Gas Supply Company Limited, the exclusive special-purpose vehicle established for the marketing and sale of natural gas produced from Shah Deniz gas-condensate field.
“The first to mention is the fact that Shah Deniz as an exploration asset implements the existing energy transmission and distribution portfolio of MVM, thus the acquisition contributes to a natural hedge in the energy portfolio. On the other hand, the newly announced transaction helps to diversify MVM’s energy supply sources. This helps MVM to secure a stable and reliable source of natural gas, which is crucial for energy security,” he said.
Mátrai pointed out that further expectations are:
- Reducing reliance on a single energy supplier by adding a significant international asset to its portfolio.
- Strengthening MVM’s position in the regional energy market by being involved in one of the largest gas fields in the world.
- Gaining long-term benefits from the potential increase in gas production and condensate yields from the Shah Deniz field.
“Overall, this acquisition will bolster MVM’s energy portfolio, making it more robust, secure, and competitive on the global energy market. The transaction is expected to close in the third quarter of 2024 once all necessary approvals and documentation are completed. This deal has become one of the largest acquisitions in MVM’s history and it contributes to make progress in the realization of MVM Group's new strategy,” said the CEO.
As for the value, Mátrai noted that the Seller and the Buyer have agreed not to publish the transaction price.
“Therefore, we cannot disclose a specific amount. However, it is certain that the value of the transaction is not described by only the price agreed by the participating parties. The strategic significance to start a new type of cooperation between the two countries, Azerbaijan and Hungary, via this transaction shall be considered as a meaningful value in our view,’ he added.
Follow the author on X: @Lyaman_Zeyn
