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.
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