Equinor — M&A Activity 2014

Oct 13, 2014

Statoil sells 15.5% share in Shah Deniz to PETRONAS for USD 2.2 billion

Statoil sells 15.5% share in Shah Deniz to PETRONAS for USD 2.2 billion

Statoil (OSE: STL, NYSE: STO) has sold its 15.5% participating interest in the

Shah Deniz production sharing agreement, 15.5% share in the South Caucasus

Pipeline Company (SCPC), 15.5% share in the SCPC holding company, and 12.4%

share in the Azerbaijan Gas Supply Company (AGSC) to the Malaysian oil and gas

company PETRONAS. The transaction value is USD 2.25 billion.

"Statoil has created significant value by participating in the development of

this asset over the years and we are pleased to announce this deal with

PETRONAS. The divestment optimises our portfolio and strengthens our financial

flexibility to prioritise industrial development and high-value growth," says

Lars Christian Bacher, executive vice president for Development and Production

International in Statoil.

In recent years Statoil has strengthened its resource base and industrial

opportunity set. To prioritise high potential future developments, Statoil has

realised substantial value from transactions on the Norwegian continental shelf

and internationally. This portfolio optimisation continues to increase financial

strength and flexibility to deliver on our strategy for high-value growth.

Statoil's 2014 second quarter production from the Shah Deniz field was 38,000

barrels of oil equivalent per day.

Following the divestment, Bacher says, "We remain committed to our business in

Azerbaijan, which continues to play an important role in Statoil's international

portfolio."

The effective date is 1 January 2014. The transaction is expected to be closed

early 2015, subject to approval from the relevant authorities.

Shah Deniz

The Shah Deniz field was discovered in 1999. It is located on the deep water

shelf of the Caspian Sea, 70 kilometres south-east of Baku, in water depths

ranging from 50 to 500 metres. Shah Deniz Stage 1 began operations in 2006. The

Shah Deniz partners are currently producing approximately 26 million cubic

meters of gas and 53,000 barrels of condensate per day, approximately equivalent

to 225,000 barrels of oil equivalent per day.

The Shah Deniz field is operated by BP (28.8%) and the other partners are TPAO

(19%), SOCAR (16.7%), Lukoil (10%), Nico (10%).

Statoil ASA is an international energy company with operations in 36 countries.

Building on 40 years of experience from oil and gas production on the Norwegian

continental shelf, we are committed to accommodating the world's energy needs in

a responsible manner, applying technology and creating innovative business

solutions. We are headquartered in Norway with approximately 22,000 employees

worldwide, and are listed on the Oslo and New York stock exchanges.

Petroliam Nasional Berhad (PETRONAS) is Malaysia's fully integrated oil and gas

multinational ranked among the largest corporations on FORTUNE Global 500®.

Operating in the Upstream and Downstream sectors, it has presence in more than

65 countries since it was first incorporated in 1974. PETRONAS is among the top

five oil and gas companies in terms of production and the most profitable

company in Asia. It is steadily driving for new solutions and pushing boundaries

to develop and add value to oil and gas resources in a manner that carefully

balances commercial, environmental and social considerations.

For more information:

Investor relations

Morten Sven Johannessen, investor relations

Tel: +1 203 570 2524

Lars Valdresbråten, investor relations

Tel: +47 40281789

Media

Knut Rostad, media relations

Tel: +47 90548990

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

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