BAKU, Azerbaijan, Nov.6
By Leman Zeynalova – Trend:
The stakes in Azeri-Chirag-Gunashli (ACG) block of oil and gas fields in the Azerbaijani sector of the Caspian Sea and Baku-Tbilisi-Ceyhan (BTC) pipeline will strengthen Hungarian MOL Group’s business profile, Trend reports citing S&P Global Ratings, as it revised the company’s outlook to positive from stable.
S&P has also affirmed its 'BBB-' long-term credit rating on MOL.
“The positive outlook indicates that the earlier announced acquisition of 9.57 percent stake in Azerbaijan’s ACG oil field and 8.9 percent in the BTC pipeline, expected to close in second-quarter 2020 subject to government and regulatory approvals, will strengthen MOL’s business profile despite increasing leverage,” said the rating agency.
Hungarian MOL Group has signed an agreement with Chevron Global Ventures Ltd and Chevron BTC Pipeline, Ltd to acquire their non-operated E&P and mid-stream interests in Azerbaijan, including a 9.57 percent stake in the Azeri-Chirag-Gunashli (ACG) oil field, and an effective 8.9 percent stake in the Baku-Tbilisi-Ceyhan (BTC) pipeline that transports the crude to the Mediterranean port of Ceyhan, for total consideration of USD 1.57 billion (subject to adjustments at closing).
The transaction remains subject to government and regulatory approvals and is expected to close by Q2, 2020.
The BTC Co. shareholders are: BP (30.1 percent); AzBTC (25.00 percent); Chevron (8.90 percent); Equinor (8.71 percent); TPAO (6.53 per cent); Eni (5.00 percent); Total (5.00 percent), ITOCHU (3.40 percent); INPEX (2.50 percent), ExxonMobil (2.50 percent) and ONGC (BTC) Limited (2.36 percent).
The contract for developing the ACG field was signed in 1994. A ceremony to sign a new contract on development of the ACG block of oil and gas fields was held in Baku Sept. 14, 2017.
The ACG participating interests are as follows: BP - 30.37 percent; AzACG (SOCAR) - 25 percent; Chevron - 9.57 percent; INPEX - 9.31 percent; Statoil - 7.27 percent; ExxonMobil - 6.79 percent; TP - 5.73 percent; ITOCHU - 3.65 percent; ONGC Videsh Limited (OVL) - 2.31 percent.
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