ONGC Videsh Ltd. finalized a US$1 billion purchase of Hess Corp.'s 2.72% stake in the Azeri, Chirag, and Guneshli fields (ACG), and Hess' 2.36% stake in the associated Baku-Tbilisi-Ceyhan (BTC) pipeline. The deal is worth an estimated US$884 million after tax net proceeds.
ONGC said that this is the first acquisition of a producing property made by the company in the Caspian Region. ONGC Videsh also announced it has finalized a major multi-billion dollar transaction in Kazakhstan’s Caspian sector, which is under review by the host Government.
The ACG fields are in the Caspian Sea about 100km east of Baku. BP operates the fields on behalf of the AIOC coventure, formed of BP, Chevron, Devon, Statoil, SOCAR, ExxonMobil, Inpex, Itochu, and TPAO.