Equinor shuts down Azerbaijan subsidiary amid asset sale to SOCAR

Norwegian energy giant Equinor has announced the closure of its Azerbaijani subsidiary, Equinor Azerbaijan Ashrafi Dan Ulduzu Aypara B.V., which was established to develop the promising Ashrafi - Dan Ulduzu-Aypara structures in the Caspian Sea.

According to Report, which cites the company, the decision comes just months after Equinor signed an agreement on December 22, 2023, to sell its assets in Azerbaijan to the State Oil Company of Azerbaijan Republic (SOCAR). The subsidiary will accept claims from creditors for two months as part of its liquidation process.

Equinor and SOCAR initially signed a Risk Service Contract on May 31, 2018, in Baku for the development of the Ashrafi - Dan Ulduzu-Aypara block. The companies created a 50/50 joint operating company to implement the project.

In January 2022, the companies stated that seismic surveys conducted on the Aypara structure indicated the presence of commercially significant oil and gas reserves. The Ashrafi - Dan Ulduzu-Aypara contract area is located 50 km east of Baku, 14 km east of Azerbaijan's coastline (Absheron Peninsula), and 7 km east of the Chilov and Pirallahi islands, with water depths ranging from 20 to 225 meters.