ONGC Videsh Ltd and its partners in Azerbaijan’s giant ACG oil fields have agreed to pay USD 3.6 billion bonus to the Azeri government for extension of the field contract by 25 years to 2049.
Also, the partners will have their stake in the field trimmed as state-owned SOCAR raises its stake.
OVL’s share of the total bonus payments would be about USD 111 million and its stake will come down to 2.31 per cent from current 2.71 per cent, the company said in a statement.
The Azeri-Chirag-Deepwater Gunashli (ACG) complex in the Caspian Sea produces most of Azerbaijan’s crude oil.
The partners have “entered into an agreement with the Azerbaijan government and State Oil Company of the Azerbaijan Republic (SOCAR) for extension of duration of the Production Sharing Agreement (PSA) for ACG oil fields until December 31, 2049,” the statement said. Read More…