Total has agreed to sell its 10% interest in the Shah Deniz field and the South Caucasus Pipeline to the Turkish state-owned E&P firm TPAO for $1.5bn.
The deal increases Ankara-based TPAO’s stake in the project to 19%.
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Located approximately 100km south-east of Baku in the Caspian Sea, the offshore Shah Deniz field covers around 860km², with water depths ranging from 50m to 550m.
The field’s first phase, which started operations in 2006, is currently producing 200,000 barrels of oil equivalent per day while the second development phase was sanctioned at the end of 2013.
The Shah Deniz field is being developed by consortium partners that include BP, Statoil, SOCAR, Lukoil, Nico and TPAO.
Total exploration and production vice-president Continental Europe and Central Asia Michael Borrell said: "The sale of our interest in Shah Deniz is in line with Total’s active portfolio management and the focus of its investment capability on more strategic assets.
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By GlobalData"This sale is another step forward in achieving our asset sale programme.
"Following this operation, the group will have sold nearly $16bn worth of assets since 2012, in line with its $15bn-$20bn asset sale target."
Total has been operating in Azerbaijan since 1995, entering the Shah Deniz production sharing agreement in 1996.
The company remains operator of the Absheron offshore field with a 40% stake.
Total said a significant gas and condensate discovery was made in 2011 on Absheron and the company is now carrying out studies to prepare the field development plan.
Image: Azerbaijan map. Photo: courtesy of Trois Cube.
