Lukoil buys $1.45-billion stake in Azerbaijan play

BAKU, February 21, 2022 – Lukoil has acquired a further 9.99% interest in the Shah Deniz gas project in Azerbaijan from Malaysian NOC Petronas for around USD 1.45 billion, the Russian multinational energy corporation announced on Friday.

The deal sees Lukoil’s interest in the project rise from 10% to 19.99%.

The Shah Deniz offshore gas condensate field is on the Caspian Sea, 70 kilometres from Baku.

The second phase of the project was completed in 2018, with annual production expected to reach 26 bcm (918 bcf) of gas and 5 million tonnes of oil and gas condensate.

In 2021, the Shah Deniz consortium produced 22.7 bcm (802 bcf) of gas and 4.2 million tonnes of oil and gas condensate.

Other partners include BP with a 29.99% operating stake, Türkiye Petrolleri Anonim Ortaklığı with a 19% stake, State Oil Company of Azerbaijan Republic with a 14.35% stake, Naftiran Intertrade Company with a 10% stake and Southern Gas Corridor with the remaining 6.67% stake.

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