ONGC Videsh inks new fuel deal in Azerbaijan 

ONGC Videsh (OVL), together with the State Oil Firm of Azerbaijan (SOCAR), bp, MOL, INPEX, Equinor, ExxonMobil, TPAO and ITOCHU, have signed an addendum to the prevailing manufacturing sharing settlement (PSA) for ACG subject within the Azerbaijan sector of Caspian Sea.

OVL, the abroad arm of state-run ONGC, had acquired the collaborating curiosity (PI) within the Azeri-Chirag-Deepwater Gunashli (ACG) venture in 2013.

The addendum, or extension, amends the ACG PSA enabling the events to go forward with the exploration, appraisal, growth and manufacturing from the non-associated pure fuel (NAG) reservoirs of the ACG subject, ONGC mentioned.

That is efficient until the top of the prevailing ACG PSA in 2049. The NAG sources of ACG are believed to be important, with as much as 4 trillion cubic toes (tcf) in place, it added.

The collaborating pursuits of the ACG co-venturers within the NAG venture are the identical as within the current ACG PSA i.e., bp (30.37 per cent), SOCAR (25 per cent), MOL (9.57 per cent), INPEX (9.31 per cent), Equinor (7.27 per cent), ExxonMobil (6.79 per cent), TPAO (5.73 per cent), ITOCHU (3.65 per cent), ONGC Videsh (2.31 per cent).

Operator of ACG PSA

bp stays the operator of the ACG PSA. NAG reservoirs are a number of geological formations beneath and above the at the moment producing oil reservoirs, and weren’t initially included within the current ACG PSA.

In 2022, ACG co-venturers and SOCAR agreed to drill a knowledge effectively into the NAG reservoirs to gather fuel strain knowledge. The information effectively was accomplished in 2023, and the interpretation of the acquired knowledge confirmed the presence of pure fuel sources throughout the anticipated strain vary.

In accordance with the addendum, SOCAR and ACG co-venturers at the moment are planning the subsequent steps for the event of NAG reservoirs. As a part of this, an preliminary effectively is deliberate to be drilled to supply fuel from two precedence reservoirs with the primary fuel manufacturing is predicted in 2025.

OVL has 32 oil and fuel property unfold throughout 15 international locations. Its manufacturing of oil and oil equal fuel (O+OEG) throughout FY24 was 10.518 Mtoe (million tonnes of oil equal) and is at the moment producing about 200,000 barrels of O+OEG per day.