EUROPE: Hungarian group MVM bought 5% of Azeri Shah Deniz gas field, one of the largest in the world

MVM Group closed the transaction with the Azerbaijani state-owned entity Southern Gas Corridor CJSC for the acquisition of a 5% stake in the Production Sharing Agreement for Shah Deniz offshore gas-condensate field in the territory of Azerbaijan and a 4% stake in Azerbaijan Gas Supply Company Limited (AGSC), the exclusive special-purpose vehicle established for the marketing and sale of the natural gas produced from Shah Deniz gas-condensate field.

With this landmark acquisition, MVM Group greatly increases its international presence, which further diversifies the Group’s position in the natural gas supply chain. The transaction is fully in line with the diversification efforts of the European Union, as well as with the national energy strategy and the growth strategy of MVM Group.

Shah Deniz, one of the world’s largest natural gas-condensate fields can produce up to 29 billion cubic meters of natural gas and roughly 60 million barrels of condensate annually. The field has significant hydrocarbon reserves and has been producing reliably and steadily for almost 20 years. A total of more than 225 billion cubic meters of natural gas and 380 million barrels of condensate have been produced from the field since inception.

Shah Deniz is an unincorporated partnership operated by bp on behalf of its owners. The extracted natural gas is delivered from the offshore gas-condensate field via pipelines to Azerbaijani, Georgian, Turkish and European partners based on long-term gas sales and transportation agreements concluded with AGSC.