Norwegian energy giant concludes activities in Azerbaijan

Norwegian multinational energy company Equinor has concluded its activities in Azerbaijan and Nigeria, finalizing deals on November 29 and December 6, respectively, Caliber.Az reports via local media.

Philippe Matthieu, Executive Vice President of Equinor for International Exploration and Production, emphasized the significance of these transactions: “These moves allow us to execute our strategy, maximize value, and focus our investments where returns will be the highest.”

For its Azerbaijani portfolio, Equinor received $745 million, while its Nigerian assets brought in up to $1.2 billion, including a purchase price of $710 million and additional contingent payments.

Matthieu acknowledged the contributions of the company's employees, partners, and suppliers in both countries: “Together, we have created substantial value for Equinor and society. I thank everyone who contributed and wish our teams success in their future professional endeavors.”

The asset sales, first announced in 2023, are part of a broader program to optimize Equinor’s oil and gas portfolio. This enables the company to focus on key regions and strengthen its international presence.

In the first three quarters of 2024, assets in Azerbaijan and Nigeria averaged production of 24,600 and 18,700 barrels of oil per day, respectively. The transactions are expected to positively impact Equinor’s cash flow in the fourth quarter of 2024, improving the company’s financial performance.

In line with its long-term strategy, Equinor forecasts an annual post-tax cash flow from oil, gas, and trading production of $20 billion by 2035. The international exploration segment will remain critical to achieving this goal, with a projected 50 per cent increase in cash flow by 2030.

Equinor has been active in Azerbaijan since 1992, participating in major projects such as the Azeri-Chirag-Gunashli (ACG) oil field and the Baku-Tbilisi-Ceyhan (BTC) pipeline. In December 2023, Equinor and the State Oil Company of Azerbaijan Republic (SOCAR) reached an agreement for the sale of Equinor’s interests, which include a 7.27% stake in ACG, 8.71% in BTC, and 50% in the Karabakh oilfield. This deal, valued at around $720 million, was finalized by the end of November 2024.

By Khagan Isayev