Equinor Waves Goodbye To Azerbaijan: Major Asset Handover Marks Strategic Shift For Oil Giant

Equinor ASA EQNR has agreed to transfer all its remaining assets in Azerbaijan to SOCAR (State Oil Company of Azerbaijan Republic), signifying a major shift in their operational focus.

The assets comprise a 7.27% non-operated interest in the Azeri Chirag Gunashli (ACG) oil fields in the Azerbaijan sector of the Caspian Sea, an 8.71% interest in the Baku-Tbilisi-Ceyhan (BTC) pipeline, and a 50% in the Karabagh field.

This move consolidates SOCAR's position in these ventures, given their existing ownership of 25% in both ACG and BTC through Azerbaijan BTC Limited and a 50% share in Karabagh.

Also Read: Oil Giants Shell & Equinor Reach Sparta Investment Decision: Set To Boost Gulf Of Mexico Oil Output

"Equinor is in the process of re-shaping its international oil and gas business, and the divestments in Azerbaijan are in line with our strategy to focus our international portfolio," commented Philippe Mathieu, Equinor's executive vice president for international exploration and production. 

Also Read: Equinor Downgraded: Analyst Highlights Faster Balance Sheet Re-leveraging And Modest 2024 Distributions

Additionally, Equinor and SOCAR have agreed to a memorandum of understanding (MoU) regarding low carbon solutions, aiming to reduce greenhouse gas emissions.

Price Action: EQNR shares are trading higher by 1.03% at $31.92 on Friday.

Disclaimer: This content was partially produced with the help of AI tools and was Reviewed And Published By Benzinga Editors.

Photo via Company