BAKU, Azerbaijan, April 17
By Leman Zeynalova - Trend:
Azerbaijani assets will ensure healthy balance for the Hungarian Mol Group, which has recently closed the transaction with the US Chevron on acquiring its share in Azeri-Chirag-Gunashli (ACG) and Baku-Tbilisi-Ceyhan (BTC), the company told Trend.
Mol Group said that in the frame of the successfully closed deal with Chevron Global Ventures, Ltd and Chevron BTC Pipeline, Ltd it acquired their non-operated exploration and production and mid-stream interests in Azerbaijan.
“Regarding the planned activities it is the operator, BP who can give further information,” said Mold Group. Furthermore, following the closing of the deal, around half of our production will come from outside the Central and Eastern Europe region, giving us a healthy balance,” said the Hungarian company.
Jay Johnson, executive vice president of upstream at Chevron said that this sale is an important part of the company’s divestment program, which is targeting before-tax proceeds of $5 billion to $10 billion between 2018 and 2020.
“Chevron regularly reviews its global portfolio to assess whether assets are strategic and competitive for capital,” added Johnson.
MOL has successfully closed the previously announced deal with Chevron Global Ventures, Ltd and Chevron BTC Pipeline, Ltd regarding the acquisition of 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 a total consideration of $1.57 billion with an effective date of 1 January 2019.
The contract for development of ACG was signed in 1994. The new contract for development of the ACG block until 2050 was signed in Baku Sept. 14, 2017.
The total length of the BTC pipeline is 1,768 kilometers, of which 443 kilometers run through the territory of Azerbaijan, 249 kilometers run through Georgia, and 1,076 kilometers go through Turkey. The construction of the pipeline began in April 2003, and it was first filled with oil on May 18, 2005.
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