Page 9 - FSUOGM Week 50 2021

FSUOGM PROJECTS & COMPANIES FSUOGM

Lukoil revises Shah

Deniz bid

AZERBAIJAN RUSSIA’S Lukoil has had to scale back its plan 2bn barrels of condensate in in-place reserves. It
to expand its share of the Shah Deniz gas field pumps gas to Georgia, Turkey and South Europe
BP and SOCAR took off Azerbaijan, after project partners BP and via the Southern Gas Corridor (SGC).
the opportunity to SOCAR used their pre-emptive rights to acquire Shah Deniz’s second stage was commissioned
expand their shares. some of the share it had wanted to buy from in 2018, and is projected to expand its output
Malaysia’s Petronas. from 16 bcm to 26 bcm per year. The field will
Lukoil struck a deal in October to buy Pet- also produce 120,000 barrels per day (bpd) of
ronas’ 15.5% stake in Shah Deniz, but instead condensate at its plateau capacity. Work is cur-
it will only get 9.99%. The purchase price has rently underway on developing the field’s North
subsequently been reduced from $2.25bn to Flank. In late November BP commissioned a
$1.45bn. SOCAR said separately it would be tak- fifth well at this site, lifting the project’s overall
ing a 4.35% interest, while operator BP would be gas output to more than 25 bcm per year.
acquiring 1.16%. Lukoil’s bid at Shah Deniz comes as the Rus-
The deal is on track for closure before the end sian private producer looks at ways of expanding
of January, and will raise Lukoil’s overall share in the Caspian Sea, which it considers one of its
to 19.99%, while BP’s position will expand to core regions. Last month the company signed an
29.99% and that of SOCAR to 14.35%. Turkey’s agreement to buy a 25% interest in BP’s Shallow
TPAO has a further 19%, while National Iranian Water Absheron Peninsula (SWAP) project, and
Oil Co has 10% and Azeri state holding SGC a it is also considering participation in two fields
further 6.7%. near the Kashagan oil project off the coast of
Shah Deniz is Azerbaijan’s largest known Kazakhstan. It has also held talks on opportuni-
gas field with 1 trillion cubic metres of gas and ties in Turkmenistan’s section of the Caspian. ™

Week 50 15•December•2021 www. NEWSBASE .com P9