Lukoil acquires 25% interest in SWAP project

By: Miguel A. Rodriguez

17:36, 29 September 2021

Lukoil joins BP and Socar in Azerbaijani offshore exploration project

One of the world's largest oil and gas companies accounting for around 2% of the global crude oil production – Lukoil – agreed to buy 25% interest in the Shallow Water Absheron Peninsula (SWAP) exploration project. The latter is operated by British Petroleum in the Azerbaijan sector of the Caspian Sea.

Referring to the deal, Lukoil CEO Vagit Alekperov stated: "Lukoil joining the BP and Socar project is in line with both Russia and Azerbaijan's national interests regarding the development of international energy cooperation."

The transaction’s value hasn't been disclosed. BP will hold 25% interest in the project following the deal, while the State Oil Company of Azerbaijan (Socar) will retain a 50% stake.

According to the Russian oil and gas company, the agreement is expected to close by the end of 2021, after the government of Azerbaijan approves it.

This is not the first time when Lukoil operates in the Caspian Sea. With its projects in the Russian sector of the sea, it contributes to about 10% of Caspian Pipeline Consortium crude volumes delivered at Novorossiisk on the Black Sea Coast.

At the moment of writing, Lukoil stock price sits at 0.28%.


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