MANGALORE: ONGC Videsh Ltd (ONGC Videsh), a 100% subsidiary of ONGC has completed the acquisition of Hess Corporation’s 2.7213% participating interest in the Azeri, Chirag and deep water portion of Guneshli fields in the Azerbaijan sector of the Caspian Sea and 2.36% interest in Baku-Tbilisi-Ceyhan (BTC) Pipeline, Sudhir Vasudeva, chairman and managing director, ONGC said here on Friday. The acquisition process was completed on Thursday.
ONGC Videsh and Hess on September 7 last had entered into the definitive agreements and subsequently all relevant government and regulatory approvals were received. This is the first acquisition of a producing property made by ONGC Videsh in the Caspian Region and is consistent with its stated strategic objective of adding high quality international assets to its existing E&P portfolio and also bears significant strategic importance to India.
Coupled with this, ONGCspia Videsh has also finalised a major multi-billion dollar transaction in the Can Region of Kazakhstan, which is under approval of the host Government. ONGC Videsh looks at the Caspian region as an important source of hydrocarbon resources towards the energy security for the country. “We are acquiring 8.42% stake from Conoco Phillip at an estimated cost of US$ 5 billion, which will yield around 1 million tones of oil,” Sudhir said.
In addition, ONGC Videsh believes that hydrocarbons can be procured in India from Caspian region through land route. The company is already in talks with relevant authorities to make this happen; Sudhir said adding that Rothschild acted as the exclusive financial advisor to OVL on this transaction. OVL will get 2.72% of the 7 lakh-odd oil barrels produced each day at Azeri, Chirag and deep water portion of Guneshli fields in the Azerbaijan sector, he noted.