New Delhi: ONGC Videsh Limited, the overseas arm of Oil & Natural Gas Corporation (ONGC), has signed a definitive Sale Purchase Agreement (SPA) for directly acquiring 0.615 percent Participating Interest (PI) in offshore Azeri Chirag Gunashli (ACG) oil field in Azerbaijan from Norway-based energy major Equinor. The agreement also includes acquiring 0.737 percent shares of the Baku Tbilisi Ceyhan (BTC) pipeline company through its wholly-owned subsidiary ONGC BTC Limited. The acquisitions are expected to be completed in the upcoming months. The total investment for these acquisitions would be up to USD 60 million. These acquisitions are in addition to ONGC Videsh’s existing 2.31 percent PI in the ACG field and 2.36 percent shareholding in the BTC pipeline.
ACG is a super-giant offshore oil field in the Caspian Sea operated by oil major BP since 1999. The field has been developed in phases and a seventh production platform, Azeri Central East, has been commissioned in early 2024. The other partners in the field are SOCAR, MOL, INPEX, Exxon, Turkiye Petrolleri AO and Itochu. The field has a contract term till December 31, 2049. Baku-Tbilisi Ceyhan (BTC) pipeline carries oil from the Azeri-Chirag-Deepwater Gunashli (ACG) field and condensate from Shah Deniz across Azerbaijan, Georgia and Türkiye. It links Sangachal terminal on the shores of the Caspian Sea to Ceyhan marine terminal on the Turkish Mediterranean coast.
ONGC Videsh Ltd, which is a wholly owned subsidiary of ONGC, has 32 assets in 15 countries. “This acquisition is consistent with its strategic objective of enhancing energy security of the nation by adding high-quality international assets with equity oil to its existing portfolio,” said a statement.
ONGC Videsh’s production of Oil and Oil Equivalent Gas (O+OEG) during FY24 was 10.518 MMtoe. It is currently producing about 200,000 barrels of O+OEG per day. ONGC Videsh has total O&G reserves (2P) of about 476 MMtoe whereas its parent, ONGC, has 2P reserves of 704 MMtoe as on 1 April 2024. The market capitalisation of ONGC stood at approximately Rs 4,16,659 crore as on July 18.
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