Equinor closes sales of 50% stake in Karabagh project to SOCAR

BAKU. July 24 (Interfax) - Equinor closed the deal to sell its 50% stake in the project to develop the Karabagh field in Azerbaijan's sector of the Caspian Sea to the State Oil Company of Azerbaijan Republic (SOCAR) on April 24, the Norwegian company reported.

Equinor also said it plans to complete the sale of its stakes in the projects to develop the Azeri-Chirag-Gunashli (ACG) oil fields and the Baku-Tbilisi-Ceyhan (BTC) pipeline before the end of 2024.

Equinor, which has had a presence in Azerbaijan since 1992, recalled that it signed an agreement with SOCAR on December 22, 2023 to sell its portfolio in the country, including the ACG, BTC and Karabagh projects.

After the deal was announced, India's ONGC Videsh Limited (ONGC) decided to exercise its pre-emptive right to buy under the agreement on the joint operation of ACG, Equinor said. As a result, an amended and revised agreement on the purchase-sale of the stakes in ACG and BTC was signed on July 19, 2024. The completion of the deal depends on the fulfilment of certain conditions, including all regulatory and contractual approvals, the company said.

Under the new agreement, the SOCAR acquired 6.655% of Equinor's 7.27% stake in ACG and 7.96% of its 8.71% stake in BTC, while ONGC acquired 0.615% and 0.75%, respectively, the company said.

SOCAR and Equinor signed a production sharing agreement for the exploration and development of the Ashrafi-Dan Ulduzu-Aypara exploratory area and a Risk Service Contract for the development of the Karabagh field on May 31, 2018. The formed an equally owned operating company to carry out the project.