A Navaratna PSU, ONGC Videsh Limited, has recently signed a Sale Purchase Agreement (SPA) to acquire a 0.615% Participating Interest (PI) in the Offshore Azeri Chirag Gunashli (ACG) oil field in Azerbaijan from Equinor. The ACG field is a super-giant offshore oil field in the Caspian Sea and has been operated by oil major BP since 1999, and is one of the most significant energy assets in the region.
The ACG oil field recently saw the commissioning of its seventh production platform, Azeri Central East, in early 2024. The ACG field boasts partnerships with industry giants such as SOCAR, MOL, INPEX, Exxon, Turkiye Petrolleri AO, and Itochu, and has a contract term until December 31st, 2049.
The agreement includes the provision of acquiring 0.737% shares of the Baku Tbilisi Ceyhan (BTC) pipeline company through its subsidiary ONGC BTC Limited. The Baku-Tbilisi Ceyhan (BTC) pipeline is a vital artery for transporting oil from the ACG field and condensate from Shah Deniz across Azerbaijan, Georgia, and Türkiye. Spanning from the Sangachal terminal on the Caspian Sea’s shores to the Ceyhan marine terminal on the Turkish Mediterranean coast, the BTC pipeline is a cornerstone of regional energy infrastructure. This acquisition marks a significant expansion of ONGC Videsh’s portfolio, enhancing its strategic foothold in a key global energy corridor.
ONGC Videsh Ltd is a wholly owned subsidiary of ONGC and a flagship NOC of India which is engaged in overseas E&P operations and is India’s largest international Oil and Gas E&P Company having 32 Assets in 15 countries. This acquisition is consistent with its strategic objective of the energy security of the nation by adding high-quality international assets with equity oil to its existing portfolio. ONGC Videsh’s production of Oil and Oil Equivalent Gas (O+OEG) during FY’24 was 10.518 MMtoe and 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 capitalization of ONGC stood at approximately Rs. 4,16,659 crore as of July 18th, 2024.
