(MENAFN- Trend News Agency)
BAKU, Azerbaijan, June 28. The deal for
acquisition by Hungarian MVM Group of a stake in Azerbaijan's Shah
Deniz field will help to secure a stable and reliable source of
natural gas , Károly Mátrai, CEO of MVM Group, said
in an exclusive interview with Trend .
On June 5, 2024, MVM Group entered into a sale and purchase
agreement with the Azerbaijani state-owned entity Southern Gas
Corridor CJSC for the Acquisition of a 5 percent stake in the
Production Sharing Agreement for Shah Deniz offshore gas-condensate
field in the territory of Azerbaijan and a 4 percent stake in
Azerbaijan Gas Supply Company Limited, the exclusive
special-purpose vehicle established for the marketing and sale of
natural gas produced from Shah Deniz gas-condensate field.
"The transaction is expected to close in the third quarter of
2024 once all necessary approvals and documentation are completed.
This deal has become one of the largest acquisitions in MVM's
history and it contributes to make progress in the realization of
MVM Group's new strategy where a crucial element is the
diversification of gas supplies thus reduction of dependence on a
single source," he said.
Mátrai noted that the Seller and the Buyer have agreed not to
publish the transaction price.
"Therefore, we cannot disclose a specific amount. However, it is
certain that the value of the transaction is not described by only
the price agreed by the participating parties. The strategic
significance to start a new type of cooperation between the two
countries, Azerbaijan and Hungary, via this transaction shall be
considered as a meaningful value in our view," he explained.
The CEO believes that this acquisition will significantly
enhance MVM's overall energy portfolio in several ways.
"The first to mention is the fact that Shah Deniz as an
exploration asset implements the existing energy transmission and
distribution portfolio of MVM, thus the acquisition contributes to
a natural hedge in the energy portfolio. On the other hand, the
newly announced transaction helps to diversify MVM's energy supply
sources. This helps MVM to secure a stable and reliable source of
natural gas, which is crucial for energy security," said
Mátrai.
He noted that further expectations are:
- Reducing reliance on a single energy supplier by adding a
significant international asset to its
portfolio;
- Strengthening MVM's position in the regional energy market by
being involved in one of the
largest gas fields in the world;
- Gaining long-term benefits from the potential increase in gas
production and condensate
yields from the Shah Deniz field.
"Overall, this acquisition will bolster MVM's energy portfolio,
making it more robust, secure, and competitive on the global energy
market. However, MVM possess natural gas upstream know-how yet, in
case of Shah Deniz MVM acquires a non-operating interest, hence BP
is the sole operator of the project. In addition to that MVM Group
has significant experience in international natural gas trade and
already gained valuable expertise in domestic upstream
activities.
At this stage we will focus on closing the transaction to become
a part of the Shah Deniz gas and condensate field. However, it is
important to mention that the Shah Deniz field is planned to be
further extended in the coming years. The Shah Deniz 'Phase 3' is
going to request further investments on behalf of the investors
participating in the project, thus with this recent acquisition
MVM has committed itself to further investments in Azerbaijan,"
said the CEO.
He went on to add that in MVM's new strategy the green
transition is one of the four major pillars.
"Expanding in renewable energies, growing renewable generation
capacities are among the objectives where the company already could
make significant progress. At state level, both Azerbaijan and
Hungary are part of the cooperation called 'Green Energy Corridor'.
This initiative will offer a suitable platform for international
cooperation in renewable energies. We are confident that this
cooperation will help to achieve further progress in renewable
energy strategies, development, and innovation.
MVM is optimistic about finding new areas of cooperation. We are
just at the beginning of a strategically important investment which
we regard as a first step. Our approach is a long-term perspective,
and we are confident that with time new opportunities will emerge.
Yet at this point our highest priority is the proper completion of
the newly announced acquisition," he concluded.
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