ONGC Videsh secure gas production rights from ACG Field
OIL & GAS

ONGC Videsh secure gas production rights from ACG Field

ONGC Videsh (OVL), the overseas subsidiary of Oil and Natural Gas Corporation, along with its partners, has successfully acquired a 25-year right to explore and produce natural gas from the BP-operated Azeri-Chirag-Deepwater Gunashli (ACG) field. This addition comes alongside their long-standing rights to produce oil from this major oilfield located in the Caspian basin's Azerbaijan sector.

According to ONGC, the non-associated natural gas (NAG) resources in the ACG field are estimated to be substantial, potentially reaching up to 4 trillion cubic feet (tcf). The announcement resulted in a 3.16% increase in ONGC’s stock price on the Bombay Stock Exchange (BSE), which rose to ?295.35. NAG refers to dry gas extracted exclusively from gas fields, unlike associated natural gas, which is produced alongside crude oil.

The gas production rights were obtained through an amendment to the existing Production Sharing Agreement (PSA). OVL had previously acquired Hess Corporation’s 2.31% participating interest (PI) in the asset back in April 2013. Current stakeholders in the ACG field include BP (30.37% PI), the State Oil Company of Azerbaijan (SOCAR, 25% PI), MOL Group (9.57%), INPEX (9.31%), Equinor (7.27%), ExxonMobil (6.79%), TPAO (5.73%), and ITOCHU (3.65%).

BP announced on September 20 that the addendum to the PSA allows for the exploration, appraisal, development, and production of the NAG reservoirs within the ACG field.

Rovshan Najaf, president of SOCAR, hailed the agreement as a "remarkable day" for Azerbaijan’s energy sector. He emphasized that the gas agreement marks not only a commercial success but also a strategic advancement in diversifying the country’s energy resources. Najaf further noted that this project would enhance Azerbaijan’s role as a vital energy supplier to Europe.

Keywords: ONGC Videsh, gas production rights, ACG field, Azerbaijan, BP, natural gas, stock increase, Production Sharing Agreement, SOCAR, energy diversification, Caspian basin.

ONGC Videsh (OVL), the overseas subsidiary of Oil and Natural Gas Corporation, along with its partners, has successfully acquired a 25-year right to explore and produce natural gas from the BP-operated Azeri-Chirag-Deepwater Gunashli (ACG) field. This addition comes alongside their long-standing rights to produce oil from this major oilfield located in the Caspian basin's Azerbaijan sector. According to ONGC, the non-associated natural gas (NAG) resources in the ACG field are estimated to be substantial, potentially reaching up to 4 trillion cubic feet (tcf). The announcement resulted in a 3.16% increase in ONGC’s stock price on the Bombay Stock Exchange (BSE), which rose to ?295.35. NAG refers to dry gas extracted exclusively from gas fields, unlike associated natural gas, which is produced alongside crude oil. The gas production rights were obtained through an amendment to the existing Production Sharing Agreement (PSA). OVL had previously acquired Hess Corporation’s 2.31% participating interest (PI) in the asset back in April 2013. Current stakeholders in the ACG field include BP (30.37% PI), the State Oil Company of Azerbaijan (SOCAR, 25% PI), MOL Group (9.57%), INPEX (9.31%), Equinor (7.27%), ExxonMobil (6.79%), TPAO (5.73%), and ITOCHU (3.65%). BP announced on September 20 that the addendum to the PSA allows for the exploration, appraisal, development, and production of the NAG reservoirs within the ACG field. Rovshan Najaf, president of SOCAR, hailed the agreement as a remarkable day for Azerbaijan’s energy sector. He emphasized that the gas agreement marks not only a commercial success but also a strategic advancement in diversifying the country’s energy resources. Najaf further noted that this project would enhance Azerbaijan’s role as a vital energy supplier to Europe. Keywords: ONGC Videsh, gas production rights, ACG field, Azerbaijan, BP, natural gas, stock increase, Production Sharing Agreement, SOCAR, energy diversification, Caspian basin.

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