MVM Group Acquires Stake in Major Deepwater Gas Field

The Hungarian energy conglomerate MVM Group has acquired a stake in one of the world's largest deep-sea natural gas fields, following the closing of a transaction between the MVM Group and Azerbaijan's state-owned Southern Gas Corridor CJSC on Friday, MVM told MTI.

With the transaction, MVM has acquired a 5% stake in the Shah Deniz offshore gas and condensate field production sharing agreement in Azerbaijan and a further 4% stake in Azerbaijan Gas Supply Company, a trading company established for the exclusive sale of natural gas produced from the Shah Deniz gas and condensate field.

MVM Group says that with this landmark acquisition, it is significantly increasing its international presence, which will further diversify the Group's position in the natural gas value chain. The transaction is fully in line with the European Union's diversification efforts, the national energy strategy and the MVM Group's growth strategy, the statement said.

It was recalled that Shah Deniz, discovered in 1999 and located 70 kilometers southeast of Baku, is one of the world's largest natural gas fields, capable of producing around 29 billion cubic meters of natural gas and around 60 million barrels of condensate per year. The gas field has significant hydrocarbon reserves and has been producing steadily and reliably for nearly 20 years. In total, it has produced more than 225 billion cubic meters of natural gas and 380 million barrels of condensate. 

According to the announcement, Shah Deniz is an unincorporated partnership with no legal entity operated by BP on behalf of the respective owners. Natural gas from the deepwater field is sold by the trading company AGSC to partners in Azerbaijan, Georgia, Turkey and Europe through pipelines under long-term agreements.