partners of ONGC Videsh Limited have entered into an agreement with Azerbaijan
government and State Oil company of the Azerbaijan Republic for extension of
duration of the Production Sharing Agreement (PSA) for Azeri-Chirag-Deep water
portion of Gunashil(ACG) oil fields until December 31, 2049, says a release on
Limited, the subsidiary of the Indian flagship Oil and natural Gas Corporation
Limited holds a participating interest in ACG oil fields in the Azerbaijan
sector of Caspian Sea. The other partners in the consortium are BP, Chevron,
INPEX, Statoil, Exxon Mobil, TPAO and ITOCHU. The agreement is subject to
ratification by the Parliament (Milli Majlis) of the Republic of Azerbaijan.
was signed in Baku on 14th Sept 2017, in the presence of H.E.
President Illham Aliyev of the Republic of Azerbaijan and a group of visiting
senior government and state officials, by Rovnag Abdullayev, President of
SOCAR, on behalf of the Azerbaijan government, and by the representatives of
the co-venture companies, including ONGC Videsh Limited. Ambassador of India to
Azerbaijan Mr Sanjay Rana was also present in the signing ceremony.
As part of
the agreement, the international co-ventures will pay a bonus of $3.6 billion
to the State Oil Fund of the Republic Azerbaijan, and SOCAR will increase its
equity share in the ACGPSA from 11.65 per cent to 25 per cent. Following
completion of the agreement, the new ACG participating interests will be : BP,
30.37 per cent; AzACG(SOCAR), 25 per cent; Chevron 9.57 per cent; INPEX 9.31
per cent; Statoil 7.27 per cent; ExxonMobil 6.79 per cent; TPAO 5.73 per cent;
ITOCHU 3.65 per cent; and ONGC Videsh Limited 2.31 per cent. ONGC Videsh’s
share of the total bus payments is about USD 111 mn.
The ACG oil
fields are located in the Caspian Sea, approximately 100 kilometers east of
Baku, the capital of the Republic of Azerbaijan. The ACG oil fields currently
produce crude oil at a rate of approximately 585,000 barrels per day (Average
rate for first half of 2017) from three oil fields (Azeri Oil Field, Chirag Oil
Field and Deep Water portion of Gunashil Oil Field), Crude oil produced at the
ACG oil fields is transported through the Baku-Tbilisi-Ceyhan pipeline (BTC
pipeline) to Ceyhan on the Mediterranean coast of the Republic Turkey, from
where it is shipped to customers.
ACG PSA was signed on 20th Sept 1994 for thirty years. There is
substantial amount of remaining oil and gas in the field and the PSA extension
will benefit Azerbaijan and partners through sustained long term production.
ONGC Videsh had acquired 2.7213 per cent participating interest in the ACG PSA
and 2.36% in BTC Pipeline from Hess Corporation on 28th March