MOL Group purchases stakes of Chevron in ACG and BTC

  • 15:42 04 November 2019

MOL Group purchases stakes of Chevron in ACG and BTC

MOL has signed an agreement with Chevron Global Ventures Ltd and Chevron BTC Pipeline, Ltd to acquire their non-operated E&P and mid-stream interests in Azerbaijan, including a 9.57% stake in the Azeri-Chirag-Gunashli (“ACG”) oil field, and an effective 8.9% stake in the Baku-Tbilisi-Ceyhan (“BTC”) pipeline that transports the crude to the Mediterranean port of Ceyhan, for total consideration of USD 1.57bn (subject to adjustments at closing), ONA reports citing the official statement of Mol Group.

Once completed, this transaction will make MOL the third largest field partner in ACG.

The total consideration payable by MOL Group for the transaction is USD 1.57bn (subject to adjustments at closing) which will be financed from available liquidity of the company.

Note that ACG is the flagship oil producing asset of Azerbaijan encompassing six off-shore production platforms with an average production rate of 584,000 barrel per day in 2018. The ACG license area covers more than 400 square kilometers and is located nearly 120 kilometers off the coast in the Caspian Sea.

ACG has been producing oil since 1997 and has been developed in several phases. ACG is operated by BP with a 30.4% stake, further stakes are held by SOCAR (25.0%), Chevron (9,57%) INPEX (9.3%), Equinor (7.3%), Exxon (6.8%), TPAO (5.7%), Itochu (3.7%), ONGC (2.3%).

The 1,768 km long Baku-Tbilisi-Ceyhan (BTC) pipeline serves as the main transport route of oil produced by ACG from Baku, Azerbaijan, through Georgia to the deep water port facilities at Ceyhan, Turkey on the Mediterranean Sea.  

Emil Ismayilov