ONGC Videsh to acquire stake in ACG oil field, Azerbaijan

New Delhi [India], July 19 (ANI): ONGC Videsh Limited, a schedule "A" Navaratna Central Public Sector Enterprise, has announced the signing of a definitive Sale Purchase Agreement (SPA) to acquire a stake in Azerbaijan's prestigious Offshore Azeri Chirag Gunashli (ACG) oil field from Equinor ASA.
According to a press release, the agreement encompasses the acquisition of a 0.615 per cent participating interest (PI) in the ACG field and a 0.737 per cent shareholding in the Baku Tbilisi Ceyhan (BTC) pipeline company through its wholly-owned subsidiary, ONGC BTC Limited.
The total investment for these acquisitions is projected to be up to USD 60 million, with the deals expected to be finalized in the forthcoming months.
This acquisition will increase ONGC Videsh's interest in the ACG oil field, augmenting its existing 2.31 per cent PI. The company will also expand its stake in the BTC pipeline, complementing its current 2.36 per cent shareholding.
The ACG field, a super-giant offshore oil reservoir located in the Caspian Sea, has been under the operation of BP since 1999.
The field has been developed in phases, with the recent addition of a seventh production platform, Azeri Central East, which began operations in early 2024.
The consortium of partners in the ACG field includes SOCAR, MOL, INPEX, ExxonMobil, Turkiye Petrolleri AO, and Itochu, with the field's contract extending until December 31 2049.
The BTC pipeline, which transports oil from the ACG field and condensate from Shah Deniz, stretches across Azerbaijan, Georgia, and Turkiye, linking the Sangachal terminal on the Caspian Sea to the Ceyhan marine terminal on the Turkish Mediterranean coast.
ONGC Videsh Ltd., a wholly-owned subsidiary of ONGC, India's leading National Oil Company (NOC), is a key player in global exploration and production (E&P) activities.
With operations spanning 32 assets across 15 countries, ONGC Videsh aims to bolster India's energy security by expanding its portfolio of high-quality international assets.
In the fiscal year 2024, ONGC Videsh reported an oil and oil equivalent gas (O+OEG) production of 10.518 million tonnes of oil equivalent (MMtoe), with current production standing at approximately 200,000 barrels of O+OEG per day.
The company's total Oil & Gas reserves (2P) are estimated at 476 MMtoe, compared to its parent ONGC's 2P reserves of 704 MMtoe as of 1 April 2024.
As of 18 July 2024, ONGC's market capitalization is approximately Rs. 4,16,659 crore.
Equinor ASA, headquartered in Stavanger, Norway, is a global energy enterprise involved in oil, gas, renewables, and low-carbon solutions. The Norwegian state holds a 67 per cent stake in Equinor, marking it as the principal shareholder. (ANI)