Politics

Lukoil increases share in Azerbaijan’s offshore Shah Daniz project

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Lukoil announces conclusion of an agreement on acquiring 15.5% interest in the Shah Daniz gas project in the Azerbaijani sector of the Caspian Sea from Petronas for US $2.25 billion, and the completion is subject to fulfillment of conditions precedent, including approval by SOCAR, Report informs, citing the Russian company.

Following completion of the sale, Lukoil’s interest in the project will increase from 10% to 25.5%.

“Around thousand Russian businesses, including Lukoil, are involved in implementation of the Action Plan for Development of Key Vectors of Cooperation between Russia and Azerbaijan, which was signed in 2018 during the meeting of two national leaders. Increasing our share in the Shah Daniz project creates new opportunities for synergy in future-oriented economy sectors of our economies.

Over 25 years, Lukoil accumulated enormous experience in the Caspian region, which we perceive as strategically important, as well as created extensive production and transport infrastructure. We are proud of the confidence placed in our competences by Caspian countries, which are among leaders of oil and gas production, regarding implementation of high priority international projects,” Lukoil President Vagit Alekperov said.

The Shah Daniz gas condensate field is located in the Azerbaijani sector of the Caspian Sea, 70 km southeast of Baku. The project is being implemented under a production sharing agreement (PSA). The commercial production under the project began in 2006.

The project participants are bp (operator, share 28.8%), Lukoil (25.5%), TPAO (19%), SOCAR (10%), NICO (10%) and SGC (6.7%).

Report

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