ONGC signs addendum for non-associated natural gas reservoirs of the ACG field in Azerbaijan

Following the announcement, shares of ONGC were trading higher by 1% at ₹289.45 per share.

The company stated that the addendum amends the ACG PSA which enables the parties to further exploration, appraisal, development, and production from the non-associated natural gas (NAG) reservoirs of the ACG field. The addendum is effective till the end of the current ACG PSA in 2049.

The company reported that the ACG field has significant resources of natural gas (NAG) resources amounting to approximately 4 trillion cubic feet (tcf).

The ACG co-venturers interest in the (NAG) project has remained unchanged. The highest interest is of bp at 30.37% while SOCAR had 25%. MOL and INPEX have 9.57% and 9.31% respectively. Equinor has a 7.27% interest and ExxonMobil has a 6.79% stake. Meanwhile, TPAO has a 5.73% stake and ITOCHU has a 3.65% stake. ONGC Videsh has the least interest at 2.31%.

The company reported that the NAG reservoirs were not initially included in the existing ACG PSA. However, an agreement with ACG co-venturers and SOCAR resulted in the drilling of a data well in 2022, and the presence of natural gas was confirmed in 2023.

ONGC stated that an initial well is planned to be drilled in the two priority reserves and is expected to commence gas production by 2025.

ONGC Videsh is India’s largest international oil and gas E&P operations company. The company acquired participating interest in the ACG project in 2013. Shares of the company have risen by nearly 41% since the beginning of the year. The stock has gained over 56% in the past year.