Indian oil giant acquires stakes in Azeri-Chirag-Guneshli, Baku-Tbilisi-Ceyhan projects

ONGC Videsh Limited, a prominent Indian oil and gas exploration company, has reached a definitive agreement with Norway's Equinor for the acquisition of a 0.615% stake in the Azeri-Chirag-Guneshli (ACG) project and a 0.737% stake in the Baku-Tbilisi-Ceyhan (BTC) pipeline.

The total investment for these acquisitions is expected to be up to $60 million, with the deal anticipated to be finalized in the coming months, Caliber.Az reports citing local media.

According to an official statement from ONGC Videsh, these new acquisitions will complement its existing interests, which include a 2.31% stake in the ACG project and a 2.36% stake in the BTC pipeline.

ONGC Videsh Ltd is a subsidiary of Oil and Natural Gas Corporation (ONGC) and is India’s largest international oil and gas exploration and production company, with a portfolio spanning 32 assets across 15 countries.

The ACG project, which involves the development of the Azeri, Chirag, and deepwater Guneshli fields, originally had a contract signed in 1994 that was set to expire in 2024. However, a new contract was established in September 2017 to extend the development activities until 2050.

The current stakeholders in the ACG project include BP plc with a 30.37% stake, State Oil Company of Azerbaijan (SOCAR) with 25%, MOL with 9.57%, ExxonMobil with 6.79%, ONGC Videsh with 2.31%, Inpex Corp. with 9.31%, ITOCHU Oil with 3.65%, Equinor with 7.27%, and TPAO with 5.73%.

Additionally, on December 22, 2023, Equinor announced an agreement with SOCAR to sell its interests in Azerbaijan. This deal includes its stakes in the ACG and BTC projects as well as a 50% share in the "Karabakh" field development. The completion of this transaction is contingent upon the fulfilment of several obligations by the involved parties.