MOL has signed an agreement with Chevron Global Ventures Ltd and Chevron BTC Pipeline to acquire its non-operated exploration and production (E&P) and midstream interests, including the Azeri–Chirag–Gunashli (ACG) oil field and the Baku–Tbilisi–Ceyhan (BTC) pipeline.
The ACG oil field is Azerbaijan’s largest strategic oil asset, covering 400 km2 including six offshore production platforms and a production average of 584,000 bbl/d in 2018.
The second half of the acquisition, the BTC pipeline, is a crucial export route for crude oil from Azerbaijan to the Mediterranean port of Ceyhan, Turkey.
The asset will add approximately 20,000 bbl/d to MOL’s production in addition to increasing MOL’s proved and probable reserves materially.
MOL Chair and CEO Zsolt Hernádi said the US$1.75 billion transaction is a significant milestone for MOL’s international E&P portfolio.
“Following the closing of the deal, around half of our production will come from outside the Central and Eastern Europe region, giving us a healthy balance,” said Mr Hernádi.
MOL Group Executive Vice President for Upstream Berislav Gaso said the deal marks the beginning of a new chapter in the company’s promise of inorganic reserve replacement.
“MOL E&P has built a strong track record of delivering outstanding profitability over the course of the past three years and with this transaction we are continuing MOL E&P’s transformation to an international business, as promised in our MOL 2030 Strategy,” said Mr Gaso.
Subject to government and regulatory approvals, the transaction is expected to close during the second quarter of 2020.
For more information visit the MOL website.
If you have news you would like featured in Pipelines International contact Managing Editor Chloe Jenkins at firstname.lastname@example.org