Indian government to consider approving OVL's $1 bn Azerbaijan acquisition

Indian government to consider approving OVL
# 30 January 2013 13:18 (UTC +04:00)

OVL had in September last year agreed to buy US energy firm Hess Corp's 2.7213 per cent stake in the Azeri, Chirag and the deep water portion of Guneshli fields in the Azerbaijan sector of the Caspian Sea and 2.36 per cent interest in the Baku-Tbilisi-Ceyhan (BTC) pipeline for USD 1 billion.

Official sources said the approval for the deal was listed on CCEA agenda for tomorrow's meeting.

The acquisition was subject to government and regulatory approvals and is expected to close by the first quarter of 2013.

The buyout marks OVL's entry into oil rich Azerbaijan. ACG, which is located in the south Caspian Sea, about 95 km off the coast of Azerbaijan, is the largest oil and gas field complex in Azerbaijan and one of the largest producing oil fields in the world.

The UK's BP Plc operated field produces around 700,000 barrels a day (35 million tonnes per annum) of crude oil. This is more than India's annual oil production.

OVL's share of output would be over 19,000 bpd or a little less than one million tonnes per annum.