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Oil/Gas Industry ONGC Videsh Buys Additional Deepwater Interests from Hess

Editor: Dominik Stephan

ONGC Videsh (OVL) signed definitive agreements for the acquisition of Hess Corporation’s 2.7213 per cent participating interest in the Azeri, Chirag and the Deep Water Portion of Guneshli Fields in the Azerbaijan sector of the Caspian Sea (ACG) and 2.36 per cent interest in the Baku-Tbilisi-Ceyhan Pipeline (BTC), for US$ 1 Billion.

ONGC oil platforms off the Indian coast. The company has just signed an agreement to purchase additional deepwater interests from Hess.
ONGC oil platforms off the Indian coast. The company has just signed an agreement to purchase additional deepwater interests from Hess.
(Picture: Wikimedia Commons)

New Delhi/India – ACG, which is located in the south Caspian Sea about 95 km off the coast of Azerbaijan, is the largest oil and gas field complex in Azerbaijan and is one of the largest producing oil fields in the world. BP operates ACG and is partnered by State Oil Company of Azerbaijan Republic (SOCAR), Chevron, Statoil, ExxonMobil, Inpex, Turkish NOC - TPAO and Itochu. Average daily production from the field is around 700,000 bopd of crude oil.

The 1,768-km BTC Pipeline is one of the main export routes for Caspian crude oil production with a capacity of around 1.0 million bopd to the Ceyhan terminal in the Mediterranean Sea in south east Turkey. The acquisition is subject to relevant government and regulatory approvals and is expected to close by the first quarter of 2013.

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