Chevron Corp. completed the sale a deepwater asset offshore Azerbaijan in a multibillion-dollar deal, the U.S. oil major said April 16.
MOL Plc, a Hungarian multinational oil and gas company, agreed to buy the asset, which consisted of Chevron’s nonoperating interests in the Azeri-Chirag-Deepwater Gunashli (ACG)—the largest oil field in the Azerbaijan sector of the Caspian Basin, for $1.57 billion.
ACG had a daily net production of 20,000 boe/d in 2019, according to the Chevron press release.
Through its affiliate, Chevron Global Ventures Ltd., the San Ramon, Calif.-based company held a 9.57% interest in the ACG oil fields. The sale also included interests in the Western Export Route Pipeline and an 8.9% interest the Baku-Tbilisi-Ceyhan oil pipeline located in Azerbaijan.
Remaining interest holders in ACG are: BP Exploration (Caspian Sea) Ltd. (Operator, 30.37%); SOCAR (25%); Inpex Southwest Caspian Sea Ltd. (9.31%); Equinor Apsheron AS (7.27%); Exxon Azerbaijan Ltd. (6.79%); Turkiye Petrolleri A.O., (5.73%); Itochu Oil Exploration (Azerbaijan) Inc. (3.65%); and ONGC Videsh Ltd. (2.31%).
Jay Johnson, executive vice president of upstream at Chevron, said the sale of is Azerbaijan assets plays “an important part” in the company’s divestment program.
Chevron is targeting before-tax proceeds of $5 billion to $10 billion through asset sales between 2018 and 2020. The company also recently sold its U.K. North Sea assets for $2 billion to Israel’s Delek Group Ltd.
“Chevron regularly reviews its global portfolio to assess whether assets are strategic and competitive for capital,” Johnson said in a statement.
Investment bank Jefferies advised Chevron on the deal, according to a Reuters report from November 2019.
Recommended Reading
Midstream M&A Adjusts After E&Ps’ Rampant Permian Consolidation
2024-10-18 - Scott Brown, CEO of the Midland Basin’s Canes Midstream, said he believes the Permian Basin still has plenty of runway for growth and development.
Post Oak-backed Quantent Closes Haynesville Deal in North Louisiana
2024-09-09 - Quantent Energy Partners’ initial Haynesville Shale acquisition comes as Post Oak Energy Capital closes an equity commitment for the E&P.
Analyst: Is Jerry Jones Making a Run to Take Comstock Private?
2024-09-20 - After buying more than 13.4 million Comstock shares in August, analysts wonder if Dallas Cowboys owner Jerry Jones might split the tackles and run downhill toward a go-private buyout of the Haynesville Shale gas producer.
Aethon, Murphy Refinance Debt as Fed Slashes Interest Rates
2024-09-20 - The E&Ps expect to issue new notes toward redeeming a combined $1.6 billion of existing debt, while the debt-pricing guide—the Fed funds rate—was cut on Sept. 18 from 5.5% to 5%.
Dividends Declared Sept.16 through Sept. 26
2024-09-27 - Here is a compilation of dividends declared from select upstream, midstream and service and supply companies.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.