Shah Deniz Stage 2

Lukoil invests $2.2 billion in Azerbaijan’s Shah Deniz

BAKU, October 8, 2021 – Lukoil has agreed to acquire an additional 15.5% interest in the offshore Shah Deniz project in Azerbaijan’s Caspian Sea for USD 2.2 billion, the Russian multinational announced on Thursday.

The sale will see Petronas divest its stake to Lukoil, increasing the buyer’s share from 10% to 25.5%.


Other partners include operator BP with a 28.8% stake, Turkey’s NOC Türkiye Petrolleri Anonim Ortaklığı with a 19% stake, SOCAR with a 10% stake, Naftiran Intertrade Company with a 10% stake and Azerbaijan’s state-formed Southern Gas Corridor with the remaining 6.7% stake.

The agreement is subject to approval by SOCAR, Azerbaijan’s NOC.

In 2020, the Shah Deniz field produced 18.1 bcm (639 bcf) of gas and 3.6 million tonnes of gas condensate.

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

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