“ONGC Videsh, together with the State Oil Company of the 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 the Caspian Sea,” the company said via its filing to the exchanges.
The addendum to the ACG PSA allows progress in exploring, appraising, developing, and producing Non-Associated Natural Gas (NAG) from the ACG field and is effective until the current PSA ends in 2049.
The NAG resources at ACG are estimated to be up to 4 trillion cubic feet (tcf).
“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%), SOCAR (25.0%), MOL (9.57%), INPEX (9.31%), Equinor (7.27%), ExxonMobil (6.79%), TPAO (5.73%), ITOCHU (3.65%), ONGC Videsh (2.31%). bp remains the operator of the ACG PSA,” the company’s filing further stated.
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With the new PSA addendum, SOCAR and ACG partners are planning the development of the NAG reservoirs. The first well is set to be drilled in two priority reservoirs, with initial gas production expected by 2025.
The NAG reservoirs, located in multiple geological formations above and below the existing oil reservoirs, were not originally part of the ACG PSA. In 2022, ACG co-venturers and SOCAR agreed to drill a data well to assess gas pressure in the NAG reservoirs. The well, completed in 2023, confirmed the presence of natural gas within the expected pressure range.
Meanwhile the shares of ONGC have increased by 29% in the last one year and in the last 6 months, they have gained 11.8%.
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