Mumbai: In a significant move, ONGC Videsh Ltd has signed a definitive Sale Purchase Agreement (SPA) for directly acquiring 0.615% Participating Interest (PI) in Offshore Azeri Chirag Gunashli (ACG) oil field in Azerbaijan from Equinor. ACG is a super-giant offshore oil field in the Caspian Sea operated by oil major BP since 1999. The field has been developed in phases and a seventh production platform, Azeri Central East, has been commissioned in early 2024. The other partners in the field are SOCAR, MOL, INPEX, Exxon, Turkiye Petrolleri AO and Itochu. OVL is a wholly owned subsidiary of ONGC, the flagship national oil company of India and  Schedule “A” Navaratna Central Public Sector Enterprise. 

According to a release by OVL, the agreement also includes acquiring 0.737% shares of the Baku Tbilisi Ceyhan (BTC) pipeline company through its wholly-owned subsidiary ONGC BTC Limited. The acquisitions are expected to be completed in the upcoming months. Total investment for these acquisitions would be up to USD 60 million. These acquisitions are in addition to ONGC Videsh’s existing 2.31% PI in the ACG field and 2.36% shareholding in the BTC pipeline, contributing in uplifting it to the position of second largest petroleum company of India, next only to its parent ONGC.

This acquisition is consistent with ONGC Videsh’s strategic objective of energy security of the nation by adding high-quality international assets with equity oil to its existing portfolio. The market capitalization of ONGC stood at approximately Rs. 4,16,659 crore as on 18 July 2024. In FY2023, ONGC in India reported a contribution of over 0.7 trillion INR to the exchequer. /BI/