Total has sold its 10% interest in its Shah Deniz field and the South Caucasus Pipeline to Turkish Petroleum (TPAO).
The Turkish-based exploration and production company will purchase the stake for $1.5billion.
The transaction is in line with Total’s strategic $20billion asset sale target. Despite selling off its entire stake in the BP-led Shah Deniz project, Total remains the operator of the Absheron offshore field with a 40% interest.
Michael Borrell, senior vice-president Continental Europe and Central Asia at Total’s exploration and production, 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.
“This sale is another step forward in achieving our asset sale program. Following this operation, the group will have sold nearly $16 billion worth of asset since 2012, in line with its $15-20 billion asset sale target.”
The offshore Shah Deniz field is located approximately 100 km southeast of Baku in the Caspian Sea.
The first phase of the field started up in 2006 and is currently producing 200,000 barrels of oil equivalent per day. A second development phase was sanctioned at the end of 2013.
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