ONGC Videsh (OVL) , the overseas investment arm of Oil and Natural Gas Corporation (ONGC), has completed the acquisition of Norwegian firm Equinor’s stake in an oilfield and an associated pipeline in Azerbaijan for $60 million, the company announced.
OVL acquired a 0.615 per cent participating interest (PI) in the offshore Azeri Chirag Gunashli (ACG) oilfield, along with a 0.737 per cent share in the Baku-Tbilisi-Ceyhan (BTC) pipeline. The acquisition was completed on November 29 through OVL’s wholly owned subsidiary, ONGC BTC Limited.
The deal, which was finalized after the signing of a sale-purchase agreement (SPA) in July, is expected to enhance OV’s position in the key oilfields. The company already holds a 2.31 per cent stake in the ACG field and a 2.36 per cent stake in the BTC pipeline. This acquisition will increase OV’s stake in both assets.
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Equinor, which had previously agreed to sell all its remaining assets in Azerbaijan to SOCAR (State Oil Company of Azerbaijan Republic) in December 2023, sold this stake to OV. The assets sold by Equinor to SOCAR included a 7.27 per cent non-operated interest in ACG and an 8.71 per cent interest in the BTC pipeline. It remains unclear why Equinor sold a portion of its stake to OVL despite the initial agreement to sell its entire stake to SOCAR.
OVL originally acquired a 2.72 per cent stake in ACG in March 2013. Following a production-sharing agreement amendment in September 2017, OVL’s stake was reduced to 2.31 per cent. BP operates the ACG field, which is one of the largest offshore oil fields in the Caspian Sea, with a 30.37 per cent stake. Other international partners, including Japanese companies and ExxonMobil, hold stakes in the field.
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The BTC pipeline, which is crucial for transporting oil from the ACG field, stretches across Azerbaijan, Georgia, and Turkey, linking the Caspian Sea to the Turkish Mediterranean coast.
OVL continues to expand its global presence, holding stakes in 32 oil and gas projects across 15 countries. The company currently produces about 200,000 barrels of oil and natural gas equivalent per day from its international assets.
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