Norwegian company Statoil is divesting its 20-percent stake in the Trans-Adriatic pipeline (TAP), which will carry gas from Azerbaijan to Europe.

Statoil sells TAP stake to Snam

STAVANGER, December 1, 2015 – Italian player Snam has agreed to buy Statoil’s stake in the Trans-Adriatic pipeline (TAP), which will carry gas from the Turkish border with Greece to Italy.

The Norwegian company announced the finalisation of the $221-million sale on Monday, which marks its third withdrawal in the region after selling 10-percent shares in the Shah Deniz field in 2013 and the South Caucasus pipeline and closing its Turkey office in June.

 

CEO Helde Lund said in July 2014 that the company would keep divesting where needed as it collected up to $577 million from the sales. The company recorded $1.93 billion in profits that year despite operating losses.

The 847-kilometer pipeline will transport 16 bcm of gas from Azerbaijan’s Shah Deniz gasfield across Turkey, Greece, Albania, the Adriatic and south Italy by 2020. By connecting Azerbaijan’s gas to markets in Europe, the pipeline will increase competition among other suppliers to the region, namely Norway and Russia.

Norwegian oil companies are trying to attract investments to build gas pipelines from Arctic fields, as most of the country’s gas reserves lie north, leading to a shift in operation locations.

Statoil’s decision comes at the heels of a proposal by Brussels that would allow energy importers in the EU to club together when bargaining for purchases.

Read our latest insights on: