BAKU, Azerbaijan, June 7. Details of the transaction on the acquisition of a stake in Azerbaijan's Shah Deniz gas condensate field project by a Hungarian MVM Group company have been revealed, TurkicWorld reports via the company's statement.
Based on the information provided, the company has recently made a deal with Southern Gas Corridor CJSC, a state-owned entity in Azerbaijan. The agreement involves acquiring a five percent stake in the Production Sharing Agreement for the Shah Deniz offshore gas-condensate field, as well as a four percent stake in Azerbaijan Gas Supply Company Limited. These stakes are related to the pipeline system that delivers natural gas from Shah Deniz to the European Union.
The statement serves as a reminder that Shah Deniz was discovered in 1999 and is situated on the deepwater shelf of the Caspian Sea, around 70 kilometers southeast of Baku. It is recognized as one of the largest natural gas-condensate fields globally.
In addition, it was mentioned that the Shah Deniz facilities have the capacity to produce up to 29 billion cubic meters of natural gas and approximately 60 million barrels of condensate per year.
The statement further highlighted the substantial hydrocarbon reserves in the field, which have been consistently and reliably produced for nearly two decades. Since its establishment, the field has yielded over 218 billion cubic meters of natural gas and 371 million barrels of condensate.
The extracted natural gas is delivered from the offshore gas-condensate field via pipelines to Azerbaijani, Georgian, Turkish, and European partners based on long-term gas sales and transportation agreements concluded with AGSC, the statement explained.
As the statement also explained, by acquiring a stake in the Shah Deniz gas field, MVM Group will cooperate with SGC and leading global energy companies such as bp (29.99 percent), Lukoil (19.99 percent), TPAO (19 percent), and NICO (10 percent).
The transaction aligns perfectly with the EU's diversification efforts, as well as with the national energy strategy and the growth strategy of MVM Group, the statement emphasized.
The closing of the transaction, when MVM Group acquires ownership, is expected to take place in the third quarter of 2024 after the satisfaction of customary conditions precedent, the statement added.
To note, SGC in Shah Deniz represents the interests of Azerbaijan, and prior to the transaction, SGC's share stood at 21.02 percent.
