Azerbaijan’s state oil company SOCAR has acquired Japanese trading house Itochu’s stake in the Azeri-Chirag-Gunashli (ACG) oilfield, increasing its holding in the country’s largest oil project to 35.3%, SOCAR said on Monday.
SOCAR said documents for the transaction had been signed and that the deal was carried out in accordance with Azerbaijani legislation, the company’s internal regulations and contractual obligations.
Before the sale, Itochu held a 3.65% stake in the ACG project. SOCAR’s share has now risen from 31.65% to 35.3%.
Financial terms of the transaction were not disclosed.
SOCAR President Rovshan Najaf said the ACG project had made an important contribution to Azerbaijan’s and the region’s energy security for many years.
He added that the start of first non-associated natural gas production from the ACG block this year would create new opportunities for the project’s future development and for expanding Azerbaijan’s gas potential.
Itochu Chief Operating Officer Tetsuya Yamada said the Japanese company had built a strong partnership with SOCAR through the ACG project and other energy investments since becoming one of the first Japanese investors in Azerbaijan in 1996.
Yamada said the decision to transfer the stake reflected Itochu’s evolving strategic priorities and its commitment to deepening cooperation with SOCAR, adding that the sale did not mean the company was leaving Azerbaijan.
ACG, operated by BP, is Azerbaijan’s largest oilfield development in the Caspian Sea and the main source of the country’s crude oil exports. The project has been producing oil since 1997 and remains central to Azerbaijan’s energy sector.
