India's ONGC Videsh signs non-associated gas deal in Azerbaijan's ACG field
ONGC Videsh, along with 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 ACG field in the Azerbaijan sector of the Caspian Sea, the company announced on September 21.
The addendum modifies the ACG PSA to allow the parties to move forward with the exploration, appraisal, development, and production of the non-associated natural gas (NAG) reservoirs at the ACG field. This amendment is valid until the PSA expires in 2049. The NAG resources at ACG are estimated to contain up to 4 trillion ft3 of gas.
The co-venturers' participating interests in the NAG project remain the same as in the original PSA, with BP holding 30.37% and SOCAR 25%, among others. BP continues as the operator.
Initial gas production from two priority reservoirs is anticipated in 2025, following the drilling of an exploratory well.
ONGC Videsh acquired the participating interest in the ACG project in 2013. ONGC Videsh, a wholly owned subsidiary of ONGC, is engaged in overseas E&P operations and is India's largest international oil and gas E&P company having 32 assets in 15 countries.