Statoil To Divest 10% Share Of Holdings In Shah Deniz & South Caucasus Pipeline

(RTTNews) - Statoil ASA (STO) reported that the Shah Deniz consortium has announced the final investment decision for the Stage 2 development of the Shah Deniz gas field, in the Caspian Sea, offshore Azerbaijan. The project will create a new Southern Gas Corridor to Europe. Statoil also announced that it has entered an agreement to divest a 10% share of its 25.5% holdings in Shah Deniz and the South Caucasus Pipeline. The buyers are SOCAR (6.7%) and BP (3.3%). Statoil will receive a total cash consideration of US$1.45 billion.

The decision by BP (BP.L, BP_UN.TO, BP) operated Shah Deniz consortium triggers plans to expand the South Caucasus Pipeline through Azerbaijan and Georgia, to construct the Trans Anatolian Gas Pipeline across Turkey and to construct the Trans Adriatic Pipeline across Greece, Albania and into Italy.

Statoil holds a 20% share in TAP AG, the owner of Trans Adriatic Pipeline, who develops the pipeline for transport of gas from Turkey to Southern Europe. Statoil will not participate as an investor in the Trans Anatolian Gas Pipeline.

Helge Lund, president and CEO of Statoil, said: "The divestment corresponds with our strategy of portfolio optimisation based on rigid prioritisation of future investment, and capturing value created from a significant gas position."

The total cost of the Shah Deniz Stage 2 and SCP Expansion projects will be around US$28 billion.