ONGC Videsh signs gas deal in Azerbaijan for ACG Field

ONGC Videsh has made a significant advancement by signing an addendum to the existing production sharing agreement for the Azeri-Chirag-Deepwater Gunashli Field in Azerbaijan on September 21, 2024. This agreement, made in collaboration with major global oil companies, allows for the exploration and production of Non-Associated Natural Gas in the region, which is expected to yield substantial resources estimated at up to 4 trillion cubic feet. The addendum was signed with key stakeholders including the State Oil Company of Azerbaijan, bp, MOL, INPEX, Equinor, ExxonMobil, TPAO, and ITOCHU. The agreement extends the operational timeline for the NAG reservoirs until 2049, maintaining the same participating interests as the existing production sharing agreement. bp continues to serve as the operator of the ACG PSA. The decision to pursue this gas deal follows the successful drilling of a data well in 2023, which confirmed the presence of natural gas resources. The co-venturers are now preparing for the next steps in developing these reservoirs, with the first gas production anticipated in 2025. This development is particularly timely for ONGC, which has faced challenges due to recent downgrades in stock ratings linked to declining oil prices. In light of these challenges, ONGC has been actively working to bolster its market position, including increasing its stake in ONGC Petro additions Limited earlier in September. This strategic move reflects ONGC's commitment to enhancing its operational capabilities and securing its future in the energy sector.