Equinor and SOCAR Forge Agreement on Azerbaijan Asset Divestment and Low-Carbon Collaboration

Philippe Mathieu, Equinor’s executive vice president for international exploration and production, and Rovshan Najaf, SOCAR President.
(Photo: SOCAR)

(IN BRIEF) Equinor has signed an agreement to sell all its remaining assets in Azerbaijan to SOCAR (State Oil Company of Azerbaijan Republic). These assets include stakes in the Azeri Chirag Gunashli (ACG) oil fields, the Baku-Tbilisi-Ceyhan (BTC) pipeline, and the Karabagh field. Equinor has been in Azerbaijan since 1992, and the ACG oil fields are the largest in the Caspian Sea’s Azerbaijani sector. The transaction is subject to regulatory and contractual approvals. Equinor and SOCAR have also signed a memorandum of understanding (MoU) to collaborate on low-carbon solutions and reducing greenhouse gas emissions.

(PRESS RELEASE) STAVANGER, 22-Dec-2023 — /EuropaWire/ —  Equinor ASA (OSE:EQNR, NYSE:EQNR), an oil, gas, wind and solar energy company active in more than 30 markets globally, and SOCAR (State Oil Company of Azerbaijan Republic) have entered into a strategic agreement, paving the way for Equinor to divest all of its remaining assets in Azerbaijan to SOCAR.

These assets encompass a 7.27% non-operated interest in the Azeri Chirag Gunashli (ACG) oil fields located in the Azerbaijan sector of the Caspian Sea, an 8.71% stake in the Baku-Tbilisi-Ceyhan (BTC) pipeline, and a 50% interest in the Karabagh field. SOCAR already possesses a 25.0% stake in ACG, another 25.0% stake in BTC through Azerbaijan BTC Limited, and a 50% stake in Karabagh.

Equinor has maintained a presence in Azerbaijan since 1992. The ACG oilfields, operated by bp, stand as the largest in the Azerbaijan sector of the Caspian basin, while the BTC pipeline serves as a crucial conduit for transporting crude oil to the Turkish Mediterranean coast.

Philippe Mathieu, Executive Vice President for International Exploration and Production at Equinor, expressed, “Azerbaijan has been an important part of Equinor’s international portfolio over the past 30 years. Together with SOCAR and the other partners in ACG, we have created significant value for the partnership and for the Azerbaijani society. SOCAR is well positioned to create further value from the assets for the longer-term and we have appreciated the close collaboration over the years.”

He further added, “Equinor is currently in the process of reshaping its international oil and gas business, and the divestments in Azerbaijan align with our strategy to concentrate on our international portfolio.”

The successful completion of this transaction remains contingent on meeting specific conditions, including obtaining all requisite regulatory and contractual approvals.

In addition to the asset divestment, Equinor and SOCAR have inked a Memorandum of Understanding (MoU) aimed at fostering collaboration on low-carbon solutions. This partnership will focus on initiatives geared towards reducing greenhouse gas emissions and advancing carbon management strategies.

The collaboration between Equinor and SOCAR underscores their shared commitment to sustainable energy practices and underscores their dedication to contributing to a greener, more environmentally responsible future.

Facts