Azerbaijan, Baku, March 29 / Trend A. Badalova /
The US Hess Corporation has completed the sale of its 2.72 percent interest in the development project of Azeri Chirag Guneshli (ACG) oil fields and its 2.36 percent interest in Baku Tbilisi Ceyhan pipeline (BTC) to India's ONGC, Hess reported.
The transaction value is $1 billion.
According to the report, adjusting for net cash flow received since the Jan. 1, 2012 effective date of sale, after tax net proceeds are 884 million dollars.
In early September, 2012 the Hess Corporation agreed to sell its share in ACG and BTC projects to ONGC.
According to John B. Hess, Chairman and CEO, consistent with the Corporation's announcement on March 4, the after tax net proceeds from this sale will be used to pay down an equivalent amount of short term debt.
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.