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ONGC Videsh (OVL), along with the State Oil Company of Azerbaijan (SOCAR), bp, MOL, INPEX, Equinor, ExxonMobil, TPAO and ITOCHU, have signed an addendum to the existing production sharing agreement (PSA) for ACG field in the Azerbaijan sector of Caspian Sea.
OVL, the overseas arm of state-run ONGC, had acquired the participating interest (PI) in the Azeri-Chirag-Deepwater Gunashli (ACG) project in 2013.
The addendum, or extension, amends the ACG PSA enabling the parties to go ahead with the exploration, appraisal, development and production from the non-associated natural gas (NAG) reservoirs of the ACG field, ONGC said.
This is effective till the end of the existing ACG PSA in 2049. The NAG resources of ACG are believed to be significant, with up to 4 trillion cubic feet (tcf) in place, it added.
The participating interests of the ACG co-venturers in the NAG project are the same as in the existing 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 remains the operator of the ACG PSA. NAG reservoirs are multiple geological formations beneath and above the currently producing oil reservoirs, and were not initially included in the existing ACG PSA.
In 2022, ACG co-venturers and SOCAR agreed to drill a data well into the NAG reservoirs to collect gas pressure data. The data well was completed in 2023, and the interpretation of the acquired data confirmed the presence of natural gas resources within the expected pressure range.
In accordance with the addendum, SOCAR and ACG co-venturers are now planning the next steps for the development of NAG reservoirs. As part of this, an initial well is planned to be drilled to produce gas from two priority reservoirs with the first gas production is expected in 2025.
OVL has 32 oil and gas assets spread across 15 countries. Its production of oil and oil equivalent gas (O+OEG) during FY24 was 10.518 Mtoe (million tonnes of oil equivalent) and is currently producing about 200,000 barrels of O+OEG per day.
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