ONGC Videsh Limited (“ONGC Videsh”), a 100% subsidiary of Oil and Natural Gas Corporation Limited (ONGC), announced the completion of acquisition of Hess Corporation’s 2.7213% participating interest in the Azeri, Chirag and the Deep Water Portion of Guneshli Fields (“ACG”) in the Azerbaijan sector of the Caspian Sea and 2.36% interest in the Baku-Tbilisi-Ceyhan Pipeline (“BTC”). Earlier, on 7th September, 2012 ONGC Videsh and Hess had entered into the definitive agreements and subsequently all relevant government and regulatory approvals were received.
This is the first acquisition of a producing property made by ONGC Videsh in the Caspian Region and is consistent with its strategic objective of adding high quality international assets to its existing E&P portfolio and also bears significant strategic importance to India.
Coupled with this, ONGC Videsh has also finalised a major multi-billion dollar transaction in the Caspian Region of Kazakhstan, which is under approval of the host Government. ONGC Videsh looks at the Caspian region as an important source of hydrocarbon resources towards the energy security for the country.
In addition, ONGC Videsh believes that hydrocarbons can be procured in India from Caspian region through land route. The company is already in talks with relevant authorities to make this happen.
Rothschild acted as the exclusive financial advisor to OVL on this transaction.
Oil and Natural Gas Corporation Ltd.
Corporate Communications, New Delhi,