SOCAR buys ITOCHU’s stake in Azerbaijan’s ACG oil project, raising share to 35.3%

Azerbaijan’s state oil company SOCAR has acquired Japanese trading group ITOCHU Corporation’s 3.65% participating interest in the Azeri-Chirag-Gunashli (ACG) oil fields, increasing its stake in the major offshore project to 35.3%, the company said on August 3.

SOCAR said the transaction documents had been signed and the acquisition was completed in line with Azerbaijani legislation, the company’s internal regulations and existing contractual obligations.

Before the deal, SOCAR held a 31.65% participating interest in ACG, one of Azerbaijan’s largest oil development projects.

“SOCAR’s participation in the ACG project has increased from 31.65% to 35.3% as a result of the transaction,” the company said.

SOCAR President Rovshan Najaf said ACG had played a key role in ensuring Azerbaijan’s energy security and supporting the wider region’s energy needs for many years.

He added that the start of the first non-associated gas production from the ACG block this year had created new opportunities for the project’s future development and for increasing Azerbaijan’s gas production potential.

SOCAR also thanked ITOCHU for its contribution to the project and its partnership over the years, saying the cooperation among all partners would continue to support the project’s long-term success.

ITOCHU Senior Operating Officer and Chief Operating Officer of its Energy & Power Solutions Division, Tetsuya Yamada, said the Japanese company’s decision to sell its stake reflected its changing strategic priorities while reaffirming its commitment to its partnership with SOCAR.

ITOCHU, which became the first Japanese company to invest in Azerbaijan in 1996, said the divestment did not mark an exit from the country and that Azerbaijan would remain an important market for its investment and trading activities.

ACG, operated by BP, has been a cornerstone of Azerbaijan’s oil industry since production began in the late 1990s. The project is located in the Azerbaijani sector of the Caspian Sea and is among the country’s most important energy assets.

By Aghakazim Guliyev