BAKU, Azerbaijan, Nov.6
By Leman Zeynalova – Trend:
Hungarian MOL Group’s net entitlement production from Azeri-Chirag-Gunashli (ACG) block of oil fields in the Azerbaijani sector of the Caspian Sea was 29,800 barrels of oil equivalent per day (mboepd) in the third quarter of 2020, Trend reports with reference to the company.
This is while the company produced 16,300 mboepd in the second quarter of 2020.
MOL Group said that gross production of ACG averaged at 452,000 bpd in Q3 2020, in compliance with the OPEC-related production ceiling for July-September.
In October 2020 the company’s overall production declined slightly, primarily due to lower net entitlement volumes at ACG for Q4.
On 16 April 2020, MOL Group 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 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-TbilisiCeyhan (“BTC”) pipeline that transports the crude to the Mediterranean port of Ceyhan for a total consideration of USD 1.57bn with an effective date of 1 January 2019. With this transaction MOL Group becomes the third largest field partner in ACG, a supergiant oil field, located in the Caspian Sea, which is operated by BP and started production in 1997.
This transaction is a major milestone in building MOL Group’s international E&P portfolio and a significant step to deliver on the inorganic reserve replacement targets. The operator estimates total gross recoverable reserves to be approximately 3bn bbl of oil, following the license extension in September 2017 until 2049.
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