Chevron Closes Sale of Azeri ACG Stake to MOL
Chevron has closed a deal to sell its stake in the Azeri-Chirag-Gunashli (ACG) fields in Azerbaijan and interests in two pipelines that carry its oil to market to Hungary's MOL for $1.57bn, it announced on April 16.
The sale covers Chevron's 9.57% interest in ACG and the West Export Route pipeline that runs from Baku to Georgia's Black Sea port of Supsa, and its 8.9% share of the Baku-Tbilisi-Ceyhan pipeline that runs to Turkey's Mediterranean coast. It will be backdated to January 1 2019, netting MOL 20,000 b/d of ACG's output last year.
Chevron said the transaction, first announced in November, served as part of its three-year plan to shed up to $10bn of assets before the end of 2020. MOL described the deal as a milestone in its push to grow its international upstream portfolio.
The changeover at ACG, responsible for more than 70% of Azerbaijan's oil output, comes as the Caspian country prepares to make a steep cut to production as part of the Opec+ agreement. Azerbaijan's Socar has held talks with its foreign partners on how to apply this reduction, the national oil company told NGW earlier this week.