Photo: DWG complex; Source: BP

Chevron gets $1.6 billion from MOL for Azerbaijan assets

Oil major Chevron has sold its interest in assets offshore Azerbaijan to Hungary’s MOL for $1.57 billion.

Chevron said on Thursday that its affiliate companies had sold their non-operating interests in the Azeri-Chirag-Deepwater Gunashli (ACG) oil fields (including interests in the Western Export Route Pipeline) and the Baku-Tbilisi-Ceyhan (BTC) oil pipeline located in Azerbaijan, to MOL for a consideration of $1.57 billion.

Chevron Global Ventures Ltd. has sold its 9.57% interest in ACG, which had a daily net production of 20,000 barrels of oil equivalent per day in 2019.

In addition, Chevron BTC Pipeline, Ltd. has completed the sale of its 8.9% interest in BTC.

“Chevron regularly reviews its global portfolio to assess whether assets are strategic and competitive for capital“, said Jay Johnson, executive vice president of upstream.

“This sale is an important part of our divestment program, which is targeting before-tax proceeds of $5 billion to $10 billion between 2018 and 2020.”

The transaction, which was announced in November 2019, closed on 16 April 2020.

The supergiant ACG field is located in the Caspian Sea and is one of the largest offshore oil fields in the world, which started production in 1997.

It is operated by BP and encompasses six offshore production platforms. Other partners in the project include SOCAR, Inpex, Equinor, ExxonMobil, TPAO, Itochu, and ONGC Videsh.