Hess to sell interests in ACG fields, BTC line to ONGC for $1 billion

Hess Corp. reported it will sell its 2.72% interest in the Azeri, Chirag, and Guneshli (ACG) fields in Azerbaijan and its 2.36% interest in the associated Baku–Tbilisi–Ceyhan (BTC) pipeline to ONGC Videsh Ltd. (OVL), the overseas arm of India’s state-owned Oil & Natural Gas Corp., for $1 billion.

The transaction, expected to close in first-quarter 2013, is subject to Indian and other government and regulatory approvals.

The BP-operated ACG fields, in the Caspian Sea 100 km east of Baku, started production in 1997.

“The sale of our interest in ACG is consistent with our strategy to divest mature and small working interest assets,” said Greg Hill, president of worldwide exploration and production for Hess. “Including this transaction, we have announced asset sales year-to-date totaling nearly $2 billion and additional asset sales are under way as part of our strategic portfolio reshaping,” Hill added.

Shareholders of the ACG fields include BP 34.1%, Chevron Corp. 10.3%, SOCAR 10%, Inpex 10%, Statoil 8.6%, ExxonMobil Corp. 8%, TPAO 6.8%, Devon Energy Corp. 5.6%, and Itochu 3.9%. Russia's Lukoil pulled out of the project in 2003 selling all of its interest to Inpex.

Related Articles

NGSA asks Congress to pass bills facilitating LNG exports

03/27/2014 The Natural Gas Supply Association called on Congress to support legislation that would facilitate more LNG exports. “Exporting LNG overseas will h...

IHS: Western sanctions indirectly could hinder Russian oil, gas revenues

03/27/2014 Western sanctions imposed against Russian government officials and business executives regarding Russia’s conflict with Ukraine could slow the avai...

US, European energy leaders to discuss gas diversification measures

03/27/2014 Top US government energy officials and their counterparts from other G7 nations will meet early next week to discuss reducing Europe’s heavy relian...

EIA: Cushing inventories down 32% over the last 2 months

03/27/2014 According to the US Energy Information Administration, crude oil inventories at Cushing, Okla., the primary crude oil storage location in the US, d...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected