MOL has signed an agreement with Chevron Global Ventures and Chevron BTC Pipeline to acquire their non-operated E&P and mid-stream interests in Azerbaijan.
This includes a 9.57% stake in the Azeri-Chirag-Gunashli oil field, and an effective 8.9% stake in the Baku-Tbilisi-Ceyhan pipeline that transports the crude to the Mediterranean port of Ceyhan, for total consideration of USD 1.57bn (subject to adjustments at closing). Once completed, this transaction will make MOL the third largest field partner in ACG.
The supergiant ACG field is Azerbaijan’s flagship oil producing asset covering 400 square kilometers and including six off-shore production platforms. It has been producing oil since 1997 and has an excellent 20 year-long operational track record. The country’s largest oil field is operated by the oil giant BP and produced on average 584,000 barrel per day in 2018. MOL Group will team up with world-class partners such as BP, Exxon, Equinor and SOCAR in this key strategic asset. MOL also acquires a stake in the BTC pipeline transporting crude oil from Azerbaijan to the port of Ceyhan, Turkey, on the Mediterranean Sea.
This world-class asset will add around 20,000 barrel per day net to MOL’s production in the coming years and will also increase MOL’s proved and probable reserves materially.