Statoil said Tuesday it will sell its 20 percent stake in the Trans Adriatic Pipeline (TAP) to the Italian gas infrastructure company Snam SpA for about $221 million.
Norway-based Statoil said the purchase amount is for both its shares in TAP and its pro-quota portion of the loans currently granted to TAP by its shareholders.
Statoil and Snam have agreed to undertake the transaction provided certain undisclosed conditions are met.
The transaction is expected to close by end 2015.
When constructed, TAP will be the westernmost section of the Southern Gas Corridor, a 2,174 mile long gas value chain linking Shah Deniz Stage 2 to gas markets in Europe.
The line will be 548 mile 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.
The divestment follows Statoil’s sale of 10 percent of its interest in the Shah Deniz Production Sharing Agreement and South Caucasus Pipeline Company Limited (SCPC) to BP and SOCAR in May 2014.
Statoil also agreed to sell its remaining 15.5 percent share in Shah Deniz as well as its 15.5 percent share in SCPC and 12.4 percent share in the Azerbaijan Gas Supply Company to Malaysia’s PETRONAS in October.
“We are pleased to announce this agreement with Snam which will realize 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 optimization and capital prioritisation,” Statoil executive vice president for Marketing, Midstream and Processing Jens Økland said.