ONGC Videsh acquired 2.72 percent stake in the Azeri, Chirag and Guneshli Fields and 2.36 percent stake in the associated BTC pipeline for $1 billion from Hess Corporation.
Hess Corporation is a global independent energy company primarily engaged in the exploration and production of crude oil and natural gas.
In 1997, the BP operated ACG fields, located in the Caspian Sea approximately 100 kilometer east of Baku, commenced production.
John B Hess, Chairman and CEO of Hess Corporation informed that this sale was another step in the execution of the firm’s strategy to become a more focused, higher growth, lower risk pure play exploration and production company.
The company would use the after tax net proceeds from this sale to pay off an equivalent amount of short term debt, in line with its announcement on March 4.