Statoil ASA (STO) Tuesday said it has decided to invest in the development of the giant Shah Deniz gas field in the Caspian Sea offshore Azerbaijan, together with consortium partners.The Norwegian oil company also said it will sell a stake in Shah Deniz and the South Caucasus Pipeline.The BP PLC (BP) operated Shah Deniz consortium will expand the gas field with subsea wells, platforms and processing facilities, and build a number of pipelines to create a gas corridor to Europe at a cost of around $28 billion, Statoil said.First gas is targeted for late 2018 with sales to Georgia and Turkey, and the first deliveries to Europe will follow around a year later, it said."The Shah Deniz Stage 2 project is a significant project which will make Azerbaijan's large gas resources available for the European market," Statoil Chief Executive Helge Lund said in a statement.Statoil said it has also agreed to sell a 10% share of its 25.5% holdings in the Shah Deniz and the South Caucasus Pipeline to SOCAR, the Azerbaijani state oil company, and BP for a total cash consideration of $1.45 billion, effective Jan. 1, 2014.

"The divestment corresponds with our strategy of portfolio optimization," Mr. Lund said.

ANN.Az