Chevron Sells Azerbaijan Assets to MOL Hungarian Oil and Gas

The deal is part of the company’s divestment program targeting proceeds of $5 to 10 billion between 2018 and 2020.

Image of a pen about to sign an agreement

Chevron’s affiliate companies have sold their 9.57% interest in the Azeri-Chirag-Deepwater Gunashli (ACG) oil fields and Western Export Route Pipeline and its 8.9% interest in the Baku-Tbilisi-Ceyhan (BTC) oil pipeline.

The ACG fields, located in Azerbaijan, produced 20,000 B/D in 2019.

The $1.57-billion deal was concluded 16 April with MOL Hungarian Oil and Gas PLC.

Jay Johnson, Chevron’s executive vice president of upstream, said, “This sale is an important part of our divestment program, which is targeting before-tax proceeds of $5 to 10 billion between 2018 and 2020." 

In addition to Chevron’s 9.57% interest in ACG, the remaining interest holders 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 AO (5.73%); Itochu Oil Exploration (Azerbaijan) Inc. (3.65%); ONGC Videsh Ltd. (2.31%).

In addition to Chevron BTC Pipeline Ltd.’s 8.90% interest in BTC, the other shareholders are: BP Pipelines (BTC) Ltd. (operator, 30.10%); SOCAR (25%); Equinor BTC Caspian AS (8.71%); Turkish Petroleum BTC Ltd. (6.53%); ENI BTC Ltd. (5.00%); Total (BTC) BV (5.00%); ITOCHU Oil Exploration (BTC) Inc. (3.40%); INPEX BTC Pipeline Ltd. (2.50%); Exxon Azerbaijan Ltd. (2.50%); ONGC BTC Ltd (2.36%).