"ONGC Videsh Signs New Gas Agreement in Azerbaijan"

ONGC Videsh (OVL), along with partners including the State Oil Company of Azerbaijan (SOCAR), bp, MOL, INPEX, Equinor, ExxonMobil, TPAO, and ITOCHU, has signed an addendum to the existing production sharing agreement (PSA) for the Azeri-Chirag-Deepwater Gunashli (ACG) field in the Caspian Sea. This move will allow the consortium to explore, appraise, and develop non-associated natural gas (NAG) reservoirs in the ACG field, according to ONGC.

The addendum extends the agreement to cover the NAG resources, which are estimated to contain up to 4 trillion cubic feet (tcf) of gas in place. The extension will be valid until the existing PSA expires in 2049.

OVL, the overseas arm of India’s state-run ONGC, first acquired its participating interest in the ACG project in 2013. The updated PSA maintains the same ownership structure, with bp holding the largest share at 30.37%, followed by SOCAR (25%), MOL (9.57%), INPEX (9.31%), Equinor (7.27%), ExxonMobil (6.79%), TPAO (5.73%), ITOCHU (3.65%), and OVL (2.31%).

The development of these gas reservoirs is expected to contribute significantly to the region’s energy output over the next few decades.

HBL