Chevron has closed the sales of its non-operated exploration and production (E&P) and midstream assets in Azerbaijan to the Hungarian oil and gas company MOL, after it received government and regulatory approvals. The two companies had agreed on the transaction in November 2019 for a total consideration of US$1.57bn.
The portfolio comprises a 9.57% stake in the Azeri-Chirag-Gunashli (ACG) oil field (including interests in the Western Export Route Pipeline), and an effective 8.9% stake in the Baku-Tbilisi-Ceyhan (BTC) oil pipeline that transports the crude oil to the Turkish port of Ceyhan, on the Mediterranean Sea.
Located in the Caspian Sea, the Azeri-Chirag-Gunashli offshore oil field entered production in 1997. Operated by BP, it produced an average 584,000 bbl/d in 2018. The total gross recoverable reserves are estimated at 3 Gbl of oil, following the license extension in 2017 until 2049.