Statoil to divest interest in Trans Adriatic Pipeline

STAVANGER, Norway -- Following the divestment of its share in Shah Deniz gas field in Azerbaijan, Statoil has agreed to sell its 20% interest in Trans Adriatic Pipeline AG to the Italian gas infrastructure company Snam SpA for a total consideration of EUR 208 million ($220 million).

This amount is for both Statoil’s 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.

Jens Økland, executive V.P. for marketing, midstream and processing, said, “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 prioritization.”

Statoil and Snam have agreed to undertake the transaction provided certain conditions are met. The transaction is expected to close by the end of 2015.

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.