Equinor sells Azerbaijan assets, eyes loss of up to $400 million
Reuters
Published Dec 22, 2023 10:31
Updated Dec 22, 2023 13:06
OSLO (Reuters) -Norway's Equinor said on Friday it has agreed to sell its assets in Azerbaijan to state-owned energy firm SOCAR, including interests in the ACG oilfield and the BTC pipeline for an undisclosed price.
Equinor declined to provide the price, but a spokesperson said the company would record a loss from the transaction in the range of $300 million to $400 million as the book value exceeded the transaction's size.
BP-operated Azeri Chirag Gunashli (ACG) is the largest oilfield in the Azerbaijan sector of the Caspian basin and the Baku-Tbilisi-Ceychan (BTC) pipeline is used to transfer crude oil to the Turkish Mediterranean coast.
"Equinor is in the process of re-shaping its international oil and gas business, and the divestments in Azerbaijan are in line with our strategy to focus our international portfolio," international operations chief Philippe Mathieu said.
The value of the deal would be revealed at a later time, Equinor said.
"We are satisfied with the price, and it will be visible in our books at the time of closing," the company spokesperson added.
The Norwegian company held 7.27% and 8.7% stakes in ACG and BTC, respectively, as well as 50% in the Karabagh oilfield development, also in the Caspian basin, the company said in a statement.
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Written By: Reuters
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