New Delhi [India], July 19 (ANI): ONGC Videsh Limited, a top government-owned company in India, has signed an agreement to buy a stake in Azerbaijan’s famous Offshore Azeri Chirag Gunashli (ACG) oil field from Equinor ASA.
According to a press release, this deal includes buying a 0.615 percent share in the ACG field and a 0.737 percent share in the Baku Tbilisi Ceyhan (BTC) pipeline company through its subsidiary, ONGC BTC Limited.
The total cost of these purchases is expected to be up to USD 60 million, and the deals should be completed in the next few months.
This acquisition will increase ONGC Videsh’s share in the ACG oil field, adding to its current 2.31 percent share. The company will also boost its stake in the BTC pipeline, adding to its existing 2.36 percent share.
The ACG field, a large offshore oil reserve in the Caspian Sea, has been managed by BP since 1999. The field has been developed in stages, with the newest platform, Azeri Central East, starting operations in early 2024.
The partners in the ACG field include SOCAR, MOL, INPEX, ExxonMobil, Turkiye Petrolleri AO, and Itochu, with the contract lasting until December 31, 2049. The BTC pipeline transports oil from the ACG field and gas condensate from Shah Deniz, stretching across Azerbaijan, Georgia, and Turkey, connecting the Sangachal terminal on the Caspian Sea to the Ceyhan terminal on the Turkish Mediterranean coast.
ONGC Videsh Ltd., a subsidiary of ONGC, India’s top National Oil Company, plays a key role in global exploration and production activities. With operations in 32 assets across 15 countries, ONGC Videsh aims to strengthen India’s energy security by acquiring high-quality international assets.
In the fiscal year 2024, ONGC Videsh produced 10.518 million tonnes of oil and gas equivalent, with current production at about 200,000 barrels per day. The company’s total oil and gas reserves are estimated at 476 million tonnes, compared to ONGC’s 704 million tonnes as of April 1, 2024.
As of July 18, 2024, ONGC’s market value is approximately Rs. 4,16,659 crore.
Equinor ASA, based in Stavanger, Norway, is a global energy company involved in oil, gas, renewables, and low-carbon solutions. The Norwegian state owns 67 percent of Equinor, making it the largest shareholder. (ANI)
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