Azerbaijan, Baku, Sept. 10 / Trend A.Badalova /
The acquisition of an interest in the Azeri-Chirag-Guneshli oil project (ACG) in Azerbaijani sector of Caspian Sea and BTC pipeline by Indian ONGC bears significant strategic importance to country's energy security, the company said in its statement.
According to the company, the acquisition would bring 9 percent additional proved reserves to ONGC Videsh Limited portfolio.
Last week U.S. corporation Hess announced it agreed to sell its share (2.72 %) in the Azeri-Chirag-Guneshli oil project (ACG) in Azerbaijani sector of Caspian Sea and its 2.36 percent interest in the associated BTC pipeline to the Indian ONGC corporation.
The transaction will cost for $1 billion and expected to close in the first quarter of 2013, said on the site of corporation.
"The acquisition would mark ONGC Videsh's entry into oil rich Azerbaijan and is consistent with its stated strategic objective of adding high quality international assets to its existing E&P portfolio," ONGC statement said.
ONGC has recently formulated its Perspective Plan - 2030 envisaging that the oil and gas production of ONGC Videsh Limited would increase from the current level of 8.75 million tones oil equivalent (MMTOE) to 20 MMTOE by 2018 and 60 MMTOE by 2030.
According to the managing director of ONGC, Sudhir Vasudeva the current transaction is the first step towards achieving this goal. The production from this asset during 2011-12 was about 15 percent of ONGC Videsh Limited crude oil production during the same period.
The BP operated ACG fields, located in the Caspian Sea approximately 100 kilometers east of Baku, commenced production in 1997.
ACG participating interests excpet Hess are: BP (operator - 35.8%), Chevron (11.3%), SOCAR (11.6%), INPEX (11%), Statoil (8.6%), ExxonMobil (8%), TPAO (6.8%), ITOCHU (4.3%), Hess (2.7%).
BTC Co. shareholders are: BP (30.1 percent); AzBTC (25 percent); Chevron (8.90 percent); Statoil (8.71 percent); ТРАО (6.53 percent); Eni (5 percent); Total (5 percent); Itochu (3.40 percent); Inpex (2.50 percent); ConocoPhillips (2.50 percent); and Amerada Hess (2.36 percent).