Equinor completes deal to divest all its remaining assets in Azerbaijan to SOCAR

Norwegian company Equinor and SOCAR (State Oil Company of Azerbaijan Republic) have signed an agreement whereby Equinor will divest all its remaining assets in Azerbaijan to SOCAR.

Report informs, citing the Norwegian company, that the agreements with SOCAR for the divestment of Equinor’s portfolio in Azerbaijan were signed on December 22, 2023. Following the announcement, ONGC Videsh Limited (ONGC) elected to exercise its pre-emption right in accordance with the ACG Joint Operating Agreement.

An amended and restated Sales and Purchase Agreement for Azeri Chirag Gunashli (ACG) and Baku-Tbilisi-Ceyhan (BTC) was signed on July 19 with the sales of Equinor’s total shares of 7.27% in ACG with 6.655% to SOCAR (State Oil Company of Azerbaijan) and 0.615% to ONGC, and sales of Equinor’s total shares of 8.71% in BTC with 7.96% to SOCAR and 0.75% to ONGC.

The agreement with SOCAR for sales of 50% in Karabagh was completed on April 24, 2024.

The assets comprise a 7.27% non-operated interest in the Azeri Chirag Gunashli (ACG) oil fields in the Azerbaijan sector of the Caspian Sea, 8.71% interest in the Baku-Tbilisi-Ceyhan (BTC) pipeline and 50% in the Karabagh field. SOCAR already holds a 25.0% stake in ACG, a 25.0% stake in BTC via Azerbaijan BTC Limited, and 50% in Karabagh.

Equinor has been present in Azerbaijan since 1992. ACG, operated by bp, is the largest oilfield in the Azerbaijan sector of the Caspian basin and the BTC pipeline is used to transfer crude oil to the Turkish Mediterranean coast.