Statoil has wrapped up the $1.45 billion farm-down of part of its interest in the BP-operated Shah Deniz project off Azerbaijan.

The sale of a 10% stake in the Shah Deniz production sharing contract and South Caucasus Pipeline Company to BP and Socar, which will acquire 3.33% and 6.67% respectively, leaves Statoil with a 15.5% interest in the Caspian Sea project.

The Norwegian state-owned company’s other interests in Azerbaijan comprise stakes in the Azeri-Chirag-Guneshli project (8.56%) and Baku-Tbilisi-Ceyhan pipeline (8.71%).

It also holds a 20% interest in the Trans Adriatic Pipeline that will transport gas from the second phase of Shah Deniz, which is currently under development, to European markets.

The disposal by Statoil is part of a strategy to streamline its asset portfolio in line with stricter project prioritisation to focus on value creation over production volume as higher costs have eroded its profit margins.

Bakudaily.az