ONGC Videsh has signed an addendum to the existing production sharing agreement (PSA) for the Azeri-Chirag-Deepwater Gunashli (ACG) Field in Azerbaijan, in association with global oil majors. This move paves the way for the exploration and production of Non-Associated Natural Gas (NAG) in the region.
What Happened: The addendum was signed on Saturday, September 21, 2024, with the State Oil Company of Azerbaijan (SOCAR), bp, MOL, INPEX, Equinor, ExxonMobil, TPAO, and ITOCHU. It amends the ACG PSA, allowing the involved parties to explore, appraise, develop, and produce from the NAG reservoirs of the ACG field until 2049.
The company revealed that the NAG resources of ACG are estimated to be significant, with up to 4 trillion cubic feet (tcf) in place. The new gas deal was commemorated in Baku, coinciding with Azerbaijan's national Oil Workers' Day and the 30th anniversary of the ACG PSA signing.
The participating interests of the ACG co-venturers in the NAG project are the same as in the existing ACG PSA i.e., bp (30.37%), SOCAR (25.0%), MOL (9.57%), INPEX (9.31%), Equinor (7.27%), ExxonMobil (6.79%), TPAO (5.73%), ITOCHU (3.65%), ONGC Videsh (2.31%). bp remains the operator of the ACG PSA.
See Also: Top 10 Underperforming Large Cap Stocks In Last 3 Years
The addendum follows the successful completion of a data well drilled into the NAG reservoirs in 2023, which confirmed the presence of natural gas resources within the expected pressure range.
As per the addendum, SOCAR and ACG co-venturers are now planning the next steps for the development of NAG reservoirs, with the first gas production expected in 2025.
This development comes at a crucial time for ONGC. Earlier this month, HSBC downgraded ONGC’s stock rating due to falling oil prices, which threatened the viability of future projects.
Furthermore, ONGC has been making strategic moves to strengthen its position in the market. Earlier in September, ONGC increased its stake in ONGC Petro additions Limited (OPaL) to 91.16%, following the conversion of Compulsorily Convertible Debentures (CCDs).
Read Next: BHEL Secures ₹6,100 Cr Contract From NTPC
Engineered by Benzinga Neuro, Edited by Utkarsh Roshan
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.