Hungary's MVM Group closes deal to buy 5% stake in Azerbaijan's Shah Deniz project, 4% of South Caucasus Pipeline Co

BAKU. Sept 2 (Interfax) - Hungary's MVM Group has closed its deal to buy a 5% stake in the Shah Deniz gas-field development project in Azerbaijan's sector of the Caspian Sea and a 4% stake in South Caucasus Pipeline Company (SCPC), which is responsible for operating the South Caucasus main pipeline, MVM Group said in a press release.

The transaction was closed on August 30. "With this landmark acquisition, MVM Group greatly increases its international presence, which further diversifies the Group's position in the natural gas supply chain. The transaction is fully in line with the [gas supply] diversification efforts of the European Union, as well as with the national energy strategy and the growth strategy of MVM Group," it said.

MVM Group said that it was acquiring the stake in the Shah Deniz project from Azerbaijan's Cenub Qaz Dehlizi, and the 4% stake in SCPC from Azerbaijan Gas Supply Company Limited (AGSC).

The stake held by Cenub Qaz Dehlizi in Shah Deniz has fallen from 21.02% to 16.02% and that held by AGSC in SCPC from 21.02% to 17.02%.

"Shah Deniz, one of the world's largest natural gas-condensate fields can produce up to 29 billion cubic meters of natural gas and roughly 60 million barrels of condensate annually," MVN Group said. The field has produced more than 225 billion cubic meters of natural gas and 380 million barrels of condensate since inception, it said.