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CCEA clears ONGC’s overseas arm’s $1 bn Azerbaijan acquisition proposal

01 Feb 2013 Evaluate

The Cabinet Committee on Economic Affairs (CCEA) has cleared ONGC’s overseas arm, ONGC Videsh's (OVL) proposal to acquire minority stakes of Hess Corporation in prolific oil fields and a pipeline in Azerbaijan for $1 billion. The acquisition, which shall provide OVL, oil production of about 1 million tonnes per year for about a decade, also mark OVL's entry into oil rich Azerbaijan.

Back in September, OVL had signed definitive agreements for the acquisition of Hess Corporation’s 2.72% participating interest in the Azeri, Chirag and the Deep Water Portion of Guneshli Fields in the Azerbaijan sector of the Caspian Sea (ACG) and 2.36% interest in the Baku-Tbilisi-Ceyhan Pipeline (BTC), for $1 billion. Further, OVL is expecting to close the deal by the first quarter of 2013.

ACG, which is located in the south Caspian Sea about 95 km off the coast of Azerbaijan, is the largest oil and gas field complex in Azerbaijan and is one of the largest producing oil fields in the world. BP operates ACG and is partnered by State Oil Company of Azerbaijan Republic (SOCAR), Chevron, Statoil, ExxonMobil, Inpex, Turkish NOC - TPAO and Itochu. Average daily production from the field is around 700,000 bopd of crude oil.

ONGC Share Price

279.25 -4.70 (-1.66%)
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Company Name CMP
ONGC 279.25
Oil India 454.40
Jindal Drilling&Inds 535.85
Deep Industries 457.70
Asian Energy Service 297.85
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