OVL Hikes Stake in Azerbaijani Oilfield with $60 Million Investment

ONGC Videsh Limited (OVL), a subsidiary of ONGC, has acquired Norwegian firm Equinor’s stake in Azerbaijan’s offshore Azeri Chirag Gunashli (ACG) oil field and an associated oil pipeline for $60 million. This increases OVL’s stake in the oil field to 2.95% and in the Baku-Tbilisi-Ceyhan (BTC) pipeline to 3.097%.

OVL’s Investment in ACG Oil Field and BTC Pipeline

Initial Investment (2013)

OVL first invested in ACG in 2013, acquiring a 2.72% stake.

Current Stake

Before the deal, OVL held a 2.31% stake in ACG and a 2.36% stake in the BTC pipeline.

New Acquisition

The recent purchase includes 0.615% in ACG and 0.737% in the BTC pipeline from Equinor, bringing OVL’s total stakes to 2.95% and 3.097%, respectively.

Azeri Chirag Gunashli Oil Field

Location

Located in the Caspian Sea, Azerbaijan.

Ownership

State Oil Company of Azerbaijan Republic (SOCAR) holds 25%, BP operates the field with a 30.37% stake, and other shareholders include Japanese firms and ExxonMobil.

Production

The field has been developed in phases, with the seventh platform, Azeri Central East, commissioned in early 2024.

Baku-Tbilisi-Ceyhan (BTC) Pipeline

Function

Transports oil from ACG and condensate from Shah Deniz across Azerbaijan, Georgia, and Turkey to the Ceyhan marine terminal in Turkey.

Ownership

SOCAR holds 25% through Azerbaijan BTC Limited.

About ONGC Videsh Limited (OVL)

Foundation

Established in 1965 as a wholly-owned subsidiary of ONGC to explore and develop petroleum and gas fields outside India.

Operations

OVL is the second-largest petroleum company in India by reserves and production, with stakes in 32 oil and gas projects across 15 countries.

Recent Production

In 2023-24, OVL produced 7.178 million metric tonnes of crude petroleum oil and 10.518 million metric tonnes of oil equivalent gas.

Headquarters

New Delhi.

Chairperson

Arun Kumar Singh.

Strategic Importance

Long-term Commitment

The ACG contract was extended till 2049 in 2017, reducing the stakes of international oil companies and adjusting OVL’s stake to 2.31% from 2.72%.

Equinor’s Exit

Equinor had previously agreed to sell its entire stake to SOCAR but ended up selling part of it to OVL, raising questions about the transaction details.

Piyush Shukla

Recent Posts

Asian Games 2026 Day 10: India Medal Winners, Results and Medal Tally

On Day 10, India secure yet another successful medal haul at the Asian Games 2026…

4 hours ago

Asian Games 2026: India Wins Women’s 4x400m Relay Gold

Gold for India in women’s 4x400m relay at the 2026 Asian Games came through Vithya…

5 hours ago

Kerala Develops AI-Based Dengue Early Warning System to Predict District-Level Trends

The scientists at the Institute of Advanced Virology (IAV) in Kerala have created the Dengue…

8 hours ago

PRAMAAN: India Issues First Certificates for Sustainable Forest Plantation and Bamboo Farming

PRAMAAN certificates have been presented by Union Minister of Environment, Forest and Climate Change Bhupender…

8 hours ago

India Energy Week 2027 to Be Held in Kolkata from January 28 to 31

India Energy Week (IEW) 2027 will take place in Kolkata between January 28 to 31,…

9 hours ago

Neeru Dhanda Wins Women’s Trap Gold, Takes India to Fifth Gold at Asian Games 2026

Indian athlete Neeru Dhanda took home the women’s individual trap gold at the Asian Games…

10 hours ago