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.

Next Story
Infrastructure Urban

NHPC Plans to Raise Rs 20 Bn via Asset Securitisation in FY26

NHPC, India’s largest hydropower company, is planning to raise around Rs 20 billion through asset securitization in the upcoming financial year as part of its strategy to fund expansion projects. Although the specific assets for securitization have not yet been finalized, internal discussions are on-going. In the previous financial year (FY25), NHPC successfully met its monetization target by securitizing the free cash flow (return on equity) of its Dulhasti Power Station located in the Union Territory of Jammu & Kashmir. This securitization, spanning the next eight years, generated total p..

Next Story
Infrastructure Energy

BHEL Consortium Bags Bhadla-Fatehpur UHVDC Transmission Project

Bharat Heavy Electricals (BHEL), in consortium with Hitachi Energy India, has secured a major contract from Rajasthan Part I Power Transmission, a wholly owned subsidiary of Adani Energy Solutions (AESL). The contract involves the design and execution of a 6,000 MW, 800 kV bi-pole and bi-directional High Voltage Direct Current (HVDC) transmission system. This system will facilitate the transfer of renewable energy from Bhadla in Rajasthan to Fatehpur in Uttar Pradesh, a key industrial and transport hub. Scheduled for completion by 2029, the HVDC link is a vital step in India's efforts to achi..

Next Story
Infrastructure Transport

PFC Sanctions Rs 35 Bn Loan for Chhattisgarh Rail Project

Power Finance Corporation (PFC), a state-owned financial institution under the Ministry of Power, has sanctioned a loan of Rs 35.17 billion to Chhattisgarh East Railway (CERL) for the development of the East Rail Corridor Project in Chhattisgarh. The loan agreement, amounting to Rs 35.16 billion, was formally executed on March 28, 2025. The East Rail Corridor Project is currently under construction and is designed primarily to facilitate the efficient transportation of coal from various coal mines located in the region. The corridor will play a crucial role in connecting these coal sources to..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?