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Baku Energy Forum - LUKOIL completes deal on acquiring interest in Shah Deniz

LUKOIL completes deal on acquiring interest in Shah Deniz

18.02.2022

News

Russian PJSC LUKOIL has announced completion of the transaction of buying a 9.99% interest in the Shah-Deniz gas project from PETRONAS, Trend reports with reference to LUKOIL.

The transaction value is approximately $1.45 billion.

Following the completion of the deal, LUKOIL increased its share in the project from 10% to 19.99%. Other parties to the project are bp (29.99%, operator), TPAO (19%), SOCAR (14.35%), NICO (10%) and SGC (6.67%).​

In 2021, the Shah Deniz field produced around 23 billion standard cubic metres (bscm) of gas and more than 4 million tonnes (around 34 million barrels) of condensate in total from the Shah Deniz Alpha and Shah Deniz Bravo platforms.

In 2020, Shah Deniz produced around 18.1 billion standard cubic metres (bcm) of gas and 3.6 million tonnes (29 million barrels) of condensate. As such, the field’s gas and condensate production rose by 27.07 percent and 11.11 percent, respectively.

During the year, the Shah Deniz field continued to provide deliveries of gas to markets in Azerbaijan (to Azerkontrakt), Georgia (to GOGC), Turkey (to BOTAS), to the BTC Company in multiple locations and to buyers in Europe.

The existing Shah Deniz facilities’ production capacity is currently about 72 million standard cubic metres of gas per day or more than 26 bcma.


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