Statoil has signed an agreement to sell its 20% interest in Trans Adriatic Pipeline (TAP) to Italy-based gas infrastructure company Snam for €208m.
Once constructed, the 882km long TAP is expected to be the westernmost section of the 3,500km long gas value chain Southern Gas Corridor that links Shah Deniz Stage 2 to gas markets in Europe.
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Statoil’s latest divestment follows the sale of 10% of its interest in the Shah Deniz production sharing agreement and South Caucasus Pipeline Company (SCPC) to BP and Socar in May 2014.
Also in October 2014, the company signed an agreement with Petronas to sell its remaining 15.5% share in Shah Deniz, 15.5% share in SCPC and 12.4% share in the Azerbaijan Gas Supply Company.
Statoil marketing, midstream and processing executive vice-president Jens Økland said: "We are pleased to announce this agreement with Snam which will realise value from our stake in TAP, of which we have been a part-owner since 2008.
"This divestment increases our financial flexibility and is in line with our strategy of portfolio optimisation and capital prioritisation."
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By GlobalDataStatoil established the company ‘TAP’ for the purpose of developing the Trans Adriatic Pipeline project which will have an initial capacity of 10 billion sm³ per annum.
It will connect with the Trans-Anatolian Natural Gas Pipeline (TANAP) at the Greece-Turkey border and cross northern Greece, Albania and the Adriatic Sea prior to coming onshore in southern Italy, where it will connect to the Italian natural gas network operated by Snam.
Snam CEO Carlo Malacarne said: "TAP is crucial to the diversification of gas sources in Europe through the development of the Southern Corridor from the Republic of Azerbaijan and potentially other producing countries.
"Snam’s entry in the project will reinforce its primary role and that of Italy’s infrastructure in boosting competition among supply sources and strengthening security of supply for the European gas system."
The transaction is expected to complete by the end of 2015.
Upon completion, TAP’s shareholding will consist of BP (20%), Socar (20%), Snam (20%), Fluxys (19%), Enagás (16%) and Axpo (5%).
Image: Statoil marketing, midstream and processing executive vice-president Jens Økland. Photo: © Statoil
