Equinor and SOCAR (State Oil Company of Azerbaijan Republic) have signed an agreement whereby Equinor will divest all its remaining assets in Azerbaijan to SOCAR, according to the company's release.
The assets comprise a 7.27% non-operated interest in the Azeri Chirag Gunashli (ACG) oil fields in the Azerbaijan sector of the Caspian Sea, 8.71% interest in the Baku-Tbilisi-Ceyhan (BTC) pipeline and 50% in the Karabagh field. SOCAR already holds a 25.0% stake in ACG, a 25.0% stake in BTC via Azerbaijan BTC Limited, and 50% in Karabagh.
Equinor has been present in Azerbaijan since 1992. ACG, operated by bp, is the largest oilfield in the Azerbaijan sector of the Caspian basin and the BTC pipeline is used to transfer crude oil to the Turkish Mediterranean coast.
The closing of the transaction is subject to the satisfaction of certain conditions including all regulatory and contractual approvals.
Equinor and SOCAR also signed a memorandum of understanding (MoU) to share experience and best practice on low carbon solutions, reducing greenhouse gas emissions and carbon management.
Since 1994, SOCAR and Equinor have been cooperating in important joint projects, including the ACG oil field operated by BP.
The ACG is located around 100 kilometres east of Baku in water depths ranging from 125-180 meters. Estimated total recoverable over the period 2018-2049 are around 3 billion barrels of oil.
ACG crude oil is sent via the Baku-Tbilisi-Ceyhan (BTC) pipeline, which carries oil from the Sangachal terminal near Baku to the Ceyhan marine terminal on the Turkish Mediterranean coast.
The Karabagh oilfield is located 120 kilometers east of Baku, in around 180 meters water depth. On 19 March 2020, SOCAR and Equinor confirmed discovery of Karabagh oil field in Azerbaijan.