ONGC Videsh (OVL), the overseas arm of state-owned Oil and Natural Gas Company, said a consortium it is part of has entered into an agreement with the Azerbaijan Government and State Oil Company of the Azerbaijan Republic (SOCAR) to extend the duration of the production sharing agreement (PSA) for a major oilfield to December 31, 2049.
The PSA is for the Azeri-Chirag-Deep water portion of Gunashli (ACG). The ACG oilfields currently produce crude oil at the rate of about 5,85,000 barrels per day from three oil fields (Azeri Oil Field, Chirag Oil Field and Deep water portion of the Gunashli Oil Field).
“The international co-venturers will pay a bonus of $3.6 billion to the State Oil Fund of the Republic of Azerbaijan, and SOCAR will increase its equity share in the ACG PSA from 11.65% to 25%,” ONGC Videsh said in a statementrelease. .“Following completion of the agreement, the new ACG participating interests will be: BP, 30.37%; SOCAR, 25%; Chevron, 9.57%; INPEX, 9.31%; Statoil, 7.27%; ExxonMobil, 6.79%; TPAO, 5.73%; ITOCHU, 3.65%; and ONGC Videsh Limited, 2.31%.”
ONGC Videsh’s share of the total bonus payments is about $111 million.