Total SA sold a 10 percent stake in Azerbaijan’s Shah Deniz project to Turkey’s state oil company for $1.5 billion as part of a divestment program.
TPAO Turkiye Petrolleri AO will acquire Total’s stake in the Shah Deniz field and the South Caucasus pipeline, Total said in a statement today.
After today’s deal, France’s largest oil company will have sold $16 billion of assets since 2012, reaching a target of raising $15 billion to $20 billion through divestments, the company said.
“The sale of our interest in Shah Deniz is in line with Total’s active portfolio management and the focus of its investment capability on more strategic assets,” Michael Borrell, Total’s senior vice president for continental Europe and central Asia, said in the statement.
The Shah Deniz project in the Caspian Sea is operated by BP Plc. The field started production in 2006 and is currently producing the equivalent of about 200,000 barrels a day. A second phase of the project, which will see natural gas shipped through a pipeline to Europe, was given the go-ahead last year.