Following the divestment of its share in the Shah Deniz gas field in Azerbaijan, Statoil has agreed to sell its 20% interest in Trans Adriatic Pipeline AG (TAP) to the Italian gas infrastructure company Snam SpA.
The Norwegian oil and gas giant is selling its interest in TAP for a total consideration of EUR 208 million ($220.2M).
Statoil says this amount is for both its shares in TAP and its pro-quota portion of the loans currently granted to TAP by its shareholders. The total consideration will be adjusted at closing, Statoil said on Tuesday.
“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,” says Jens Økland, executive vice president for Marketing, Midstream and Processing.
Statoil and Snam have agreed to undertake the transaction provided certain conditions are met. The transaction is expected to close by end 2015, Statoil said.
When constructed, TAP will be the westernmost section of the Southern Gas Corridor, a 3,500 km long gas value chain linking Shah Deniz Stage 2 to gas markets in Europe. It will be 882 km long with an initial 10 billion Sm3 per annum capacity. 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 before coming onshore in southern Italy, where it will link up to the Snam-operated Italian natural gas network.