Allen & Overy and Simmons & Simmons have acted on an Indian oil company’s acquisitions of a stake in Azerbaijan-based oil fields and an interest in an Azerbaijan-originated pipeline from U.S. oil player Hess.
India’s Oil and Natural Gas Corporation’s international arm, ONGC Videsh Ltd (OVL) acquired a 2.72 percent stake in the Azeri, Chirag and Guneshli Fields (ACG) in Azerbaijan, in addition to a 2.36 percent interest in the Baku-Tbilisi-Ceyhan (BTC) pipeline from Hess.
Simmons & Simmons advised ONGC Videsh, which signed a sale and purchase agreement to acquire interests in the ACG fields and the BTC pipeline from Hess, which was represented by Allen & Overy. The Central Asian Grata Law Firm acted as local counsel to ONGC Videsh.
Located in the south Caspian Sea off the coast of Azerbaijan, the ACG produces about 700,000 barrels of oil daily. The 1,768 km BTC pipeline transports most of the ACG’s production from Azerbaijan to the Ceyhan terminal in the Mediterranean Sea in Southeast Turkey.
Hong Kong-based partners Tom Deegan and Vivien Yang led the Simmons & Simmons team.
“We are delighted to have assisted ONGC Videsh on its debut investment in Azerbaijan, and the acquisition of its first oil producing asset in Central Asia,” said Deegan in a statement. “It represents a significant strategic move for the company, as well as for India.”
“Once this transaction is completed, in addition to its stake in Kazakhstan’s Satpayev Exploration Block, ONGC Videsh will be in close proximity to further investment opportunities in the Caspian region and may be able to ship production from its future investments in the region through the BTC pipeline,” said Yang.
The acquisition is subject to government and regulatory approvals, and is expected to close in the first quarter of 2013.
Kanishk Verghese is North Asia journalist at ALB. Follow us on Twitter: @ALB_Magazine.
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