The BTC pipeline, which is operated by BP, transports oil produced at the ACG oil field in the Caspian Sea
MOL completes acquisition of stakes in ACG oil field and BTC pipeline for $1.5bn. (Credit: Pixabay/Gerd Altmann)
Oil and gas company, MOL Group has completed the acquisition of the non-operated stake in Azeri-Chirag-Gunashli (ACG) oil field and the non-operated stake in the Baku-Tbilisi-Ceyhan (BTC) pipeline from the subsidiaries of Chevron.
The firm has purchased 9.57% interest in the ACG oil field from Chevron Global Ventures as well as an 8.9% interest in the BTC pipeline located in Azerbaijan from Chevron BTC Pipeline for a total consideration of $1.57bn.
An agreement to acquire the assets from the subsidiaries of Chevron was signed by MOL in November last year.
Details of BTC pipeline and ACG oil field
The BTC pipeline, which is operated by BP, transports oil that is produced at the ACG oil field in the Caspian Sea. It also transports condensate produced from the Shah Deniz gas-condensate project.
The 1,768km long pipeline connects the Sangachal terminal near Baku to the marine terminal at Ceyhan on the Turkey.
Through the acquisition, MOL is expected to become the third largest stakeholder in the ACG oil field, which is located in the Caspian Sea and has commenced production in 1997.
Located 120km off the coast of Azerbaijan in 120m of water, the ACG oil field is estimated to contains 5.4 billion barrels of recoverable oil. In 2019, the field had a daily net production of 20,000 barrels of oil equivalent per day
In September 2017, the Azerbaijani oil field’s license was extended until 2049.
Chevron upstream executive vice president Jay Johnson said: “Chevron regularly reviews its global portfolio to assess whether assets are strategic and competitive for capital.
“This sale is an important part of our divestment program, which is targeting before-tax proceeds of $5 billion to $10 billion between 2018 and 2020.”