OVL hikes stake in Azerbaijani Oilfield with $60 million investment

Utkarsh Classes Last Updated 20-07-2024

OVL hikes stake in Azerbaijani Oilfield with $60 million investment

Economy 4 min read

The Navratna company ONGC Videsh Limited (OVL) has bought the Norwegian firm Equinor's stake in Azerbaijan's offshore Azeri Chirag Gunashli oil field and an associated oil pipeline for $60 million.

OVL, an ONGC subsidiary, has increased its stake in the Azeri Chirag Gunashli oil field to 2.95 per cent.

OVL Investment in the Oil Field and Pipeline

In 2013, the OVL invested for the first time in the Azeri Chirag Gunashli oil field, buying a 2.72 per cent stake in the company.
Before the deal with Equinor, the current stake of OVL in the oil field was 2.31 per cent and 2.36 per cent in the Baku Tbilisi Ceyhan pipeline company.
Under the deal with the Norwegian company Equinor the OVL has bought 0.615 per cent share in the oil field and 0.737 shares in the Baku Tbilisi Ceyhan pipeline company from Equinor.
Thus, the total OVL Stake in the Azeri Chirag Gunashli oil field will increase to 2.95 per cent and 3.097 per cent for the Baku Tbilisi Ceyhan pipeline company.

About Azeri Chirag Gunashli oil field of Azerbaijan

Azeri Chirag Gunashli oil field of Azerbaijan is a large oil-bearing area of Azerbaijan in the Caspian Sea.
The government owned State Oil Company of Azerbaijan Republic owns a 25 per cent stake in the oil field and a 25 per cent share in the Baku Tbilisi Ceyhan pipeline.
The oilfield is operated by the British multinational company BP which has a share of 30.37 percent in the oil field. The other major shareholders are Japanese firms and ExxonMobil.
The Baku-Tbilisi Ceyhan pipeline carries oil from the Azeri-Chirag-Deepwater Gunashli field to the Ceyhan marine terminal in Turkiye. It passes through Azerbaijan, Georgia, to reach the Ceyhan marine terminal in Turkiye.

About ONGC Videsh Limited (OVL)

The ONGC Videsh Limited (OVL) was set up as a wholly-owned subsidiary of the public sector ONGC in 1965.
It was set up to explore and develop petroleum and gas fields outside India.
In terms of reserves and production, the OVL is the second largest petroleum company in India after ONGC.
ONGC Videsh has a stake in 32 oil and gas projects in 15 Countries,-. Azerbaijan (2 projects), Bangladesh (2 Projects), Brazil (2 projects), Colombia (4 projects), Mozambique (1 Project), Myanmar (6 projects), Russia (3 projects), South Sudan (2 projects), Syria (2 projects), UAE (1 project), Venezuela (2 projects), Vietnam (2 projects) and other 5 dormant projects in four countries that are currently inactive.
ONGC Videsh produced 7.178 million metric tonnes of crude petroleum oil and 10.518 Million Metric Tonnes of oil equivalent to Gas in 2023-24.