Azerbaijan, Baku, Jan. 31 / Trend A.Badalova/
India's federal cabinet has approved ONGC Videsh Ltd's stake acquisition in the projects in Azerbaijan on Thursday, Dow Jones reported with the reference to the India's information and broadcasting minister Manish Tiwari.
"The cabinet has approved the acquisition," Tiwari told reporters after the cabinet meeting.
In early September, 2012 the American Hess company agreed to sell its share in the development project of Azeri Chirag Guneshli oil fields (2.72 per cent), as well as a 2.36 per cent stake in Baku Tbilisi Ceyhan pipeline to India's ONGC.
The transaction value is estimated at $1 billion, the report stated. The company expects to complete the transaction in the first quarter of 2013.
Production at Azeri-Chirag-Guneshli oil field, located about 100 kilometers east of Baku in the Caspian Sea, was launched in 1997.
The shares in the contract, excluding the share of Hess, are distributed as follows: BP (operator of Azeri-Chirag-Guneshli) - 35.83 per cent, Chevron - 11,27 per cent, Inpex - 10,96 per cent, AzACG - 11 6 per cent, Statoil - 8,56 per cent, Exxon - 8 per cent, TPAO - 6.75 per cent and Itocu - 4,3 per cent.