ONGC Videsh Ltd., a wholly owned subsidiary of Oil & Natural Gas Corp., acquired an additional stake in an offshore Azerbaijan oil field from Norway's state-owned Equinor for $60 million on Friday.
The deal includes 0.615% participating interest in offshore Azeri Chirag Gunashli field in Azerbaijan from Equinor and 0.737% shares of Baku Tbilisi Ceyhan pipeline company through its wholly owned subsidiary, ONGC BTC Ltd., according to an exchange filing.
The acquisition is in addition to ONGC Videsh's existing 2.31% stake in the ACG field and 2.36% shareholding in BTC pipeline, the statement added.
ONGC Videsh said the investment "is consistent with its strategic objective of energy security by adding high-quality international assets with equity oil to its existing portfolio".
About The Azerbaijan Oil Field
The ACG field, a super-giant offshore oil field located in the Caspian Sea, has been operated by BP Plc since 1999. Developed in phases, the field's seventh production platform, Azeri Central East, was commissioned earlier this year. Other partners in the ACG field include American major ExxonMobil Corp. The field's contract is set to run until 2049.
Additionally, the BTC pipeline transports oil from the ACG field and condensate from the Shah Deniz field, spanning Azerbaijan, Georgia, and Turkey. It connects the Sangachal terminal on the Caspian Sea to the Ceyhan marine terminal on Turkey's Mediterranean coast.
ONGC Videsh, the foreign arm of India's top oil explorer, has 32 assets in 15 countries. Its production of oil and oil-equivalent gas during the last financial year was 10.5 million tonnes of oil equivalent and is currently producing about 2,00,000 barrels per day.
As of April, ONGC Videsh has total reserves of about 476 mtoe while its parent, ONGC has reserves of 704 mtoe. Azerbaijan is a major producer and exporter of crude oil and natural gas.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
