Hess completes sale of its shares in Azerbaijan projects

29 March 2013 16:43 (UTC+04:00)

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The US Hess Corporation has completed the sale of its 2.72 percent interest in the development project of Azeri-Chirag-Guneshli (ACG) oil fields and its 2.36 percent interest in Baku-Tbilisi-Ceyhan pipeline (BTC) to India's ONGC, Hess reported.

The transaction value is $1 billion.

According to the report, adjusting for net cash flow received since Jan. 1, 2012 effective date of sale, after tax net proceeds are 884 million dollars.

In early September, 2012 the Hess Corporation agreed to sell its share in ACG and BTC projects to ONGC.

Production at Azeri-Chirag-Guneshli oil field, located about 100 kilometers east of Baku in the Caspian Sea, was launched in 1997.

The shares in the contract, excluding the share of Hess, are distributed as follows: BP (operator of Azeri-Chirag-Guneshli) - 35.83 per cent, Chevron - 11,27 per cent, Inpex - 10,96 per cent, AzACG - 11 6 per cent, Statoil - 8,56 per cent, Exxon - 8 per cent, TPAO - 6.75 per cent and Itocu - 4,3 per cent.