Norway's Equinor to receive $2 bln from selling assets in Azerbaijan, Nigeria
BAKU. Dec 9 (Interfax) - The Norwegian company Equinor expects to receive $2 billion from selling its production assets in Azerbaijan and Nigeria, the company said.
Equinor announced in 2023 that it intended to sell its assets and conclude operations in Azerbaijan and Nigeria. The deals were respectively closed on November 29 and December 6, 2024. Equinor has ceased operating in these countries after more than 30 years of cooperation.
"The company has completed the deals to exit its production assets in Azerbaijan and Nigeria for a total estimated amount of up to $2 billion. Of this, $745 million comes from proceeds from selling the portfolio in Azerbaijan. The transaction in Nigeria is valued at up to $1.2 billion, including $710 million for acquisition and contingent payments," the company said.
The company's average daily production in Azerbaijan and Nigeria amounted to 24,600 and 18,700 barrels of oil, respectively, in January-September 2024.
"Completing these deals is expected to positively impact cash flow in the fourth quarter of this year," Equinor said.
These transactions align with Equinor's strategy to optimize its oil and gas portfolio and will allow it to expand investments in other countries, "creating a more focused and resilient international portfolio," it said.
"Given recent acquisitions and investments in competitive projects, we aim to ensure sustainable production and profitability over the long term," Equinor Executive Vice President for International Exploration and Production Philippe Mathieu was quoted as saying.
Equinor said in its capital markets report presented in February 2024 that it expects average cash flow from operations to remain at around $20 billion annually through 2035, following deduction of taxes on oil, gas and trade. Its international exploration and production business plays a key role in achieving this target, with cash flow from this segment expected to increase 50% by 2030.
As reported, on December 22, 2023 Equinor concluded an agreement with the State Oil Company of the Azerbaijani Republic (SOCAR) to sell its assets in the country. Equinor sold its share in the projects for developing the Azeri-Chirag-Gunashli (ACG) block and the Baku-Tbilisi-Ceyhan (BTC) oil pipeline to SOCAR, as well as 50% in the project to develop the Karabakh oil field. The deal to sell its stake in the Karabakh field was concluded in April 2024.
Equinor signed a modified, final agreement with SOCAR and India's ONGC Videsh Limited in July to sell its 7.27% share in the ACG project and 8.71% in the BTC pipeline. The value of this deal alone is estimated at $720 million.
