Hungary takes 5% stake in Azerbaijan’s Shah Deniz gasfield

BAKU, June 5, 2024 – Hungary’s MVM will acquire a 5% stake in Azerbaijan’s Shah Deniz gasfield, one of the world’s largest gas plays, the state-owned conglomerate said on Wednesday.

MVM said it has entered into a sale and purchase agreement with Azerbaijani state-owned entity Southern Gas Corridor for the stake. It will also take a 4% stake in Azerbaijan Gas Supply Company, the SPV responsible for sales of gas from the asset.

Situated around 70 kilometres southwest of Baku, the BP-operated Shah Deniz field can produce 29 bcm of natural gas and around 60 million boe of condensate annually.

Gas from the field is transported via pipeline to Azerbaijani, Georgian, Turkish and European customers.

MVM’s stake will give Hungary “protection from big energy price swings,” Hungarian Foreign Minister Peter Szijjarto was quoted by Reuters as saying.

Photo of Shah Deniz gasfield operations courtesy of MVM.

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