India’s ONGC Buys Stake in Caspian Sea Oil Assets from Equinor for $60M
July 19, 2024
India’s Oil and Natural Gas Corporation Limited (ONGC) Videsh has signed a definitive $60 million sale and purchase agreement (SPA) with Equinor to increase its stake in the offshore Azeri Chirag Gunashli (ACG) oil field and associated pipeline in Azerbaijan.
ONGC Videsh will acquire 0.615% stake in ACG field and 0.737% shares of the Baku Tbilisi Ceyhan (BTC) pipeline company through its wholly-owned subsidiary ONGC BTC.
The acquisitions, worth $60 million, are expected to be completed in the upcoming months, ONGC Videsh said.
These acquisitions are in addition to ONGC Videsh’s existing 2.31% participating interest in the ACG field and 2.36% 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 until December 31, 2049.
BTC pipeline carries oil from the 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.
