MOL buys stake in Azerbaijan’s ACG oil field, BTC pipeline

Automotive

josefkubes / Shutterstock.com

Hungarian oil and gas company MOL on Monday signed a deal with Chevron Global Ventures and Chevron BTC Pipeline to acquire their non-operated E+P and mid-stream interests in Azerbaijan, including a stake in the ACG oil field, and the BTC pipeline, state news wire MTI reports.

Image: josefkubes / Shutterstock.com

MOL said it will acquire a 9.57% stake in the oil field and an 8.9% stake in the pipeline that transports the crude to the Mediterranean port of Ceyhan, for USD 1.57 billion (subject to adjustments at closing).

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

The supergiant ACG field is located in the Caspian Sea and is one of the largest offshore oil fields in the world, since the start of production in 1997. Operated by BP and encompassing six offshore production platforms, ACG produced an average 584,000 barrels per day in 2018. The operator estimates total gross recoverable reserves to be approximately 3 billion bbl of oil, following the license extension in September 2017 until 2049. 

These share purchases provide an excellent fit to MOL’s current portfolio in line with the goals of the companyʼs 2030 strategy, MOL said in the statement.

The transaction is subject to government and regulatory approvals and is expected to close in Q2 2020. MOL expects the groupʼs pro-forma total hydrocarbon 2P reserves to increase to around 360-380 mmboe  (million barrels of oil equivalent) by the end of 2020.

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