New Delhi: ONGC Videsh Limited, a wholly owned subsidiary of ONGC and India’s largest international oil and gas exploration company, has completed the acquisition of a 0.615% Participating Interest (PI) in Azerbaijan’s offshore Azeri-Chirag-Gunashli (ACG) field from Equinor. The deal also includes a 0.737% shareholding in the Baku-Tbilisi-Ceyhan (BTC) pipeline company through its subsidiary, ONGC BTC Limited, for a total investment of $60 million.
The acquisition, finalized on November 29, 2024, adds to ONGC Videsh’s existing 2.31% PI in the ACG field and 2.36% shareholding in the BTC pipeline. ACG is a super-giant offshore field in the Caspian Sea operated by BP since 1999 and has a contract term till December 31, 2049. The field recently commissioned its seventh production platform, Azeri Central East, in early 2024.
The BTC pipeline transports oil from the ACG field and condensate from Shah Deniz across Azerbaijan, Georgia, and Türkiye, linking the Sangachal terminal on the Caspian Sea to the Ceyhan terminal on the Turkish Mediterranean coast.
Strengthening energy security
This acquisition aligns with ONGC Videsh’s strategic objective of enhancing India’s energy security by adding high-quality international assets with equity oil to its portfolio. The company’s production of Oil and Oil Equivalent Gas (O+OEG) for FY’24 stood at 10.518 million metric tonnes of oil equivalent (MMtoe), with current production at about 200,000 barrels per day.
ONGC Videsh now holds 32 assets across 15 countries, with 2P reserves of approximately 476 MMtoe as of April 1, 2024. The parent company, ONGC, reported 2P reserves of 704 MMtoe.
Global partnership
The other partners in the ACG field include SOCAR, MOL, INPEX, Exxon, Turkiye Petrolleri AO, and Itochu. Equinor ASA, a global energy company based in Stavanger, Norway, divested its stake to ONGC Videsh as part of its portfolio strategy.
With this acquisition, ONGC Videsh strengthens its presence in the Caspian region and reinforces its role in meeting India’s growing energy needs. The market capitalization of ONGC stood at ₹3,22,999 crore as of November 29, 2024.
