ONGC Videsh, the overseas arm of India’s Maharatna oil company ONGC, has teamed up with Azerbaijan’s state-owned oil company SOCAR and other global oil majors to explore and develop Non-Associated Natural Gas (NAG) reservoirs in the ACG field, located in the Azerbaijan sector of the Caspian Sea.

“ONGC Videsh, along with the State Oil Company of Azerbaijan (SOCAR), bp, MOL, INPEX, Equinor, ExxonMobil, TPAO, and ITOCHU, has signed an addendum to the existing Production Sharing Agreement (PSA) for the ACG field in the Azerbaijan sector of the Caspian Sea,” The company announced in an official statement.

This new agreement amends the current ACG PSA, enabling the consortium to advance the exploration, appraisal, development, and production of natural gas from the ACG field’s NAG reservoirs. The addendum will be effective until the expiration of the existing ACG PSA in 2049. The NAG resources in ACG are estimated to hold up to 4 trillion cubic feet (tcf) of natural gas in place.

The signing of the gas deal took place in Baku during an event celebrating Azerbaijan’s National Oil Workers’ Day, which also marked the 30th anniversary of the original ACG PSA agreement.

ONGC Videsh acquired its Participating Interest (PI) in the ACG project in 2013. As a wholly-owned subsidiary of ONGC, India’s leading National Oil Company (NOC), ONGC Videsh is actively involved in overseas Exploration and Production (E&P) operations. It holds the distinction of being India’s largest international oil and gas E&P company, with a portfolio of 32 assets across 15 countries.

During FY24, ONGC Videsh achieved a production of 10.518 million metric tonnes of oil equivalent (MMtoe) of oil and oil-equivalent gas (O+OEG). Currently, the company is producing approximately 200,000 barrels of O+OEG per day.

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