ONGC Videsh Limited, the overseas investment arm of Oil and Natural Gas Corporation (ONGC), has strengthened its portfolio with strategic acquisitions in Azerbaijan’s energy sector.
The company announced a 0.615% participating interest (PI) in the prolific Azeri-Chirag-Gunashli (ACG) field from Norway’s Equinor.
Alongside, it has increased its stake in the Baku-Tbilisi-Ceyhan (BTC) pipeline to 2.36% through its subsidiary ONGC BTC Limited.
The move aligns with ONGC Videsh’s objective of ensuring long-term energy security for India and diversifying its global energy assets.
“The acquisition is a significant step in our journey to secure sustainable energy supplies and bolster our international footprint,” a company statement mentioned.
Overview of the ACG Field
The ACG field, a super-giant offshore oil and gas reservoir in the Caspian Sea, has been in operation since 1999 under BP’s leadership.
The field is known for its prolific output and has been developed in multiple phases. The latest addition, the Azeri Central East platform, began operations in early 2024.
Other partners in the project include major industry players such as SOCAR, MOL, INPEX, Exxon, Turkiye Petrolleri AO, and Itochu.
The project’s contract term extends until December 31, 2049.
The BTC Pipeline: A Vital Energy Corridor
The BTC pipeline is a key infrastructure project transporting crude oil and condensate from the Caspian region.
Stretching across Azerbaijan, Georgia, and Türkiye, it connects the Sangachal terminal on the Caspian shores. It also links to the Ceyhan terminal on the Mediterranean coast.
The pipeline ensures efficient access to international markets, reinforcing its strategic importance in the energy landscape.
Growing Global Profile
As India’s largest international oil and gas exploration and production company, ONGC Videsh operates 32 assets across 15 countries.
In the fiscal year 2023-24, the company reported an oil and gas production of 10.518 million metric tons of oil equivalent (MMtoe). As of April 2024, it maintains reserves of 476 MMtoe.
Its parent entity, ONGC, boasts reserves of 704 MMtoe.
As reported by msn.com, the acquisition solidifies ONGC Videsh’s presence in the Caspian region. It also underpins the company’s commitment to bolstering India’s energy security amid rising global demand.
