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Retronas liquidates its branch in Azerbaijan due to the withdrawal from the Shah Deniz project

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08 April 2022

Petronas Azerbaijan (Shah Deniz) is closing its branch in Azerbaijan. This was announced on Wednesday by the press center of the company.

 In the fall of 2021, LUKOIL agreed to buy Petronas' stake (15.5%) in Azerbaijan's largest gas field, Shah Deniz in the Caspian Sea, for $2.25 billion.

 But in the end, SOCAR bought 4.35% from Petronas, 1.16% from BP, and LUKOIL got only 9.99% for about $1.45 billion. The deal was closed in January 2022.

 Thus, BP plc (29.99%, operator), LUKOIL (19.99%), TPAO (19%), SOCAR (14.35%), NICO (10%) and SGC (subsidiary of SOCAR, - 6.67%) are participating in the Shah Deniz project.

 At the same time, Petronas has been successfully developing oil and gas fields in the Turkmen sector of the Caspian Sea since 1996 under the terms of a production sharing agreement. Since then, the company's investment in the project has exceeded $11 billion.

 Petronas was among the sponsors of the International Investment Forum «Oil and Gas of Turkmenistan» held on March 29-30.