MOL Purchases Stake in ACG Oil Field, BTC Pipeline

MOL Group has signed an agreement with Chevron Global Ventures Ltd and Chevron BTC Pipeline, Ltd to acquire their non-operated E&P and mid-stream interests in Azerbaijan, including a 9.57% stake in the Azeri-Chirag-Gunashli (“ACG”) oil field, and an effective 8.9% stake in the Baku-Tbilisi-Ceyhan (“BTC”) pipeline, for total consideration of $1.57 billion (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 (154 square miles) and including six off-shore production platforms. It has been producing oil since 1997.

The country’s largest oil field is operated by oil giant BP and produced on average 584,000 barrel per day (bpd) in 2018. MOL Group will team up with world-class partners such as BP, Exxon, Equinor and SOCAR in this 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.

The ACG oil field is Azerbaijan’s largest strategic oil asset, while the BTC pipeline is a crucial export route for the Azeri crude; post-completion MOL will be the third largest field partner in ACG

This will add around 20,000 bpd net to MOL’s production in the coming years and will also increase MOL’s proved and probable reserves materially. 

The total consideration payable by MOL Group for the transaction is $1.57 billion (subject to adjustments at closing) which will be financed from available liquidity of the company.

“This major $1.57 billion transaction is a significant milestone in building our international E&P portfolio, in one of our core regions, the CIS, where we will team up with world-class partners. Following the closing of the deal, around half of our production will come from outside the CEE region, giving us a healthy balance,” said Zsolt Hernádi, MOL Group’s Chairman-CEO.

The transaction remains subject to government and regulatory approvals and is expected to close by Q2, 2020.

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