ONGC Videsh Limited, a Schedule “A” Navaratna Central Public Sector Enterprise, has signed a definitive Sale Purchase Agreement (SPA) to acquire a 0.615% Participating Interest (PI) in the offshore Azeri Chirag Gunashli (ACG) oil field in Azerbaijan. This deal, made with Equinor, also includes the acquisition of 0.737% shares in the Baku Tbilisi Ceyhan (BTC) pipeline company through its wholly-owned subsidiary, ONGC BTC Limited. The total investment for these acquisitions is expected to be up to $60 million, and the transactions are anticipated to be completed in the coming months.
This acquisition adds to ONGC Videsh’s existing 2.31% PI in the ACG field and 2.36% shareholding in the BTC pipeline. The ACG oil field, located in the Caspian Sea and operated by BP since 1999, is a super-giant offshore oil field developed in phases. The field recently saw the commissioning of its seventh production platform, Azeri Central East, in early 2024. Other partners in the field include SOCAR, MOL, INPEX, Exxon, Turkiye Petrolleri AO, and Itochu. The field’s contract term extends until December 31, 2049.
The BTC pipeline, pivotal in transporting oil from the ACG field and condensate from Shah Deniz, traverses Azerbaijan, Georgia, and Türkiye. It connects the Sangachal terminal on the Caspian Sea’s shores to the Ceyhan marine terminal on Türkiye’s Mediterranean coast.
ONGC Videsh Ltd, a wholly-owned subsidiary of ONGC, India’s flagship National Oil Company (NOC), is engaged in overseas Exploration and Production (E&P) operations. It stands as India’s largest international Oil and Gas E&P company, with 32 assets across 15 countries. This acquisition aligns with ONGC Videsh’s strategic objective of bolstering energy security for India by integrating high-quality international assets with equity oil into its portfolio. In FY’24, ONGC Videsh’s production of Oil and Oil Equivalent Gas (O+OEG) was 10.518 million metric tonnes of oil equivalent (MMtoe), currently producing about 2,00,000 barrels of O+OEG per day. The company holds total Oil & Gas reserves (2P) of approximately 476 MMtoe, while ONGC, its parent company, has 2P reserves of 704 MMtoe as of April 1, 2024.
Equinor ASA, a global energy company headquartered in Stavanger, Norway, holds a diverse portfolio encompassing oil, gas, renewables, and low-carbon solutions. The Norwegian state is the primary shareholder in Equinor, holding a 67% stake.