ONGC Videsh Limited has announced that the consortium partners of the giant Azeri-Chirag-Deep water portion of Gunashli (ACG) fields in Azerbaijan have inked an agreement with Azerbaijan government and state oil company of the Azerbaijan Republic for extending the production sharing agreement for ACG oil fields until December 31, 2049. 

 

ONGC’s subsidiary — ONGC Videsh Ltd, holds a participating interest in ACG oil fields in the Azerbaijan sector of Caspian Sea. The other partners in the consortium are BP, Chevron, INPEX, Statoil, ExxonMobil, TPAO and ITOCHU.

 

The ACG oil fields are located in the Caspian Sea, around 100 kilometres east of Baku, the capital of the Republic of Azerbaijan. The ACG oil fields currently produce crude oil at a rate of 5,85,000 barrels per day from three oil fields. Crude oil produced at the ACG oil fields is transported through the Baku-Tbilisi-Ceyhan pipeline (BTC pipeline) to Ceyhan on the Mediterranean coast of Turkey, from where it is shipped to customers.

 

There is substantial amount of remaining oil and gas in the field and extension of agreement will benefit Azerbaijan and partners through sustained long term production. ONGC Videsh had acquired 2.7213 percent participating interest in the ACG PSA and 2.36 percent in BTC pipeline from Hess Corporation on 28th March, 2013.