Statoil Sells 15.5% Share In Shah Deniz To Petronas For $2.2 Bln - Update

(RTTNews) - Norwegian energy firm Statoil ASA (STO) Monday announced the sale of its 15.5 percent share in the Shah Deniz field, located on the deep water shelf of the Caspian Sea, to the Malaysian oil and gas company Petronas for $2.2 billion.

The firm has sold its 15.5 percent participating interest in the Shah Deniz production sharing agreement, 15.5 percent share in the South Caucasus Pipeline Company, 15.5 percent share in the SCPC holding company, and 12.4 percent share in the Azerbaijan Gas Supply Co.

"The divestment optimises our portfolio and strengthens our financial flexibility to prioritise industrial development and high-value growth," said Lars Christian Bacher, executive vice president for Development and Production International in Statoil.

According to the company, in recent years Statoil has strengthened its resource base and industrial opportunity set.

To prioritise high potential future developments, the company has realized substantial value from transactions on the Norwegian continental shelf and internationally.

Statoil believes that this portfolio optimization continues to increase financial strength and flexibility to deliver on its strategy for high-value growth.

The Shah Deniz field is operated by BP with a 28.8 percent stake, and the other partners are with TPAO 19 percent), SOCAR with 16.7 percent and Lukoil as well as Nico with 10 percent each.

In the second quarter of 2014, Statoil 's production from the Shah Deniz field was 38,000 barrels of oil equivalent per day.

The company said it remains committed to its business in Azerbaijan, which continues to play an important role in Statoil's international portfolio.

The effective date is January 1, 2014. The transaction is expected to be closed early 2015, subject to approval from the relevant authorities.

The stock fell 2.2 percent to close at 158.50 kroner on Friday.