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LUKOIL acquires interest in Shah Deniz project

Russian multinational energy corporation LUKOIL announced the completion of the transaction of buying a 9.99 per cent interest in the Shah-Deniz gas project from Malaysian oil and gas company PETRONAS.

As a result of the completion of the deal, LUKOIL has increased its share in the project from 10 per cent to 19.99 per cent. According to the press statement of LUKOIL, the transaction value has reached approximately 1.45 billion US dollars.

Other parties holding shares in the project are British Petroleum (29.99 per cent, operator), TPAO (19 per cent), SOCAR (14.35 per cent), NICO (10 per cent) and SGC (6.67 per cent).​

The Shah Deniz gas condensate field is located in the Azerbaijan sector of the Caspian Sea. The project is implemented under production sharing agreements (PSA). In 2021, the Shah Deniz consortium extracted 22.7 billion cubic metres of gas and 4.2 million tonnes of oil and gas condensate.

The gas produced is sold on the markets of Azerbaijan, Georgia and Turkey. Since December 2020, it is also delivered to Europe via the Southern Gas Corridor.

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