ONGC Dials Expansion with ACG Oil Field and BTC Pipeline Share
Oil and Natural Gas Corporation, a Maharatna public sector undertaking, has strategically attempted to strengthen its presence in the oil and gas sector around the globe. ONGC Videsh, the wholly-owned subsidiary of ONGC, had announced a major acquisition deal in Azerbaijan’s Azeri-Chirag-Gunashli (ACG) oil field and the Baku-Tbilisi-Ceyhan pipeline. This development has been seen to have brought ONGC into the limelight, making it a must-watch stock for investors.
Additional Stake Acquired in ACG Oil Field
ONGC Videsh has increased its stake in the ACG oil field by acquiring an additional 0.615% equity from Equinor, a Norwegian energy company. This acquisition raises ONGC Videsh’s stake in the field from 2.31% to 2.925%. ACG field is one of the largest offshore oil projects on the Caspian Sea and is under BP‘s management since 1999. This field has served as the cornerstone of Azerbaijan’s production with constant upgrading and development, which had the new production platform – Azeri Central East– commissioned in early 2024.
The ACG consortium is comprised of major global energy players such as SOCAR, MOL, INPEX, Exxon, Türkiye Petrolleri AO, and Itochu. The production-sharing agreement for this field extends until December 31, 2049, ensuring long-term potential for stakeholders.
Increased Stake in BTC Pipeline
ONGC Videsh has reinforced its footprint in the BTC pipeline along with the ACG acquisition. The company acquired an additional 0.737% stake through its wholly-owned subsidiary ONGC BTC Limited. This increases the total share of the pipeline from 2.36% to 3.097%.
The BTC pipeline is a critical transportation link for crude oil from the Caspian region to international markets through Turkey, further strengthening ONGC‘s strategic position in the global energy supply chain.
Financials of the Deal
According to ONGC’s regulatory filings, the total investment for these acquisitions amounts to $60 million. The deal was sealed on November 29, 2024. The strategic acquisition not only boosts ONGC‘s share in significant international projects but also marks the commitment of ONGC to enhance its share in high-potential energy markets.
ONGC Videsh: The Global Oil Explorer
ONGC Videsh is India‘s largest international oil and gas exploration and production company. Operating in 15 countries and owning a portfolio of 32 properties, it has a significant role in India‘s energy security. The recent acquisitions reflect the strategic intent of the company to increase its presence in the international market.
Performance on Stock Market
The acquisition news has come when ONGC’s stock has been on a roll. On Friday, ONGC shares closed at ₹256.75 on BSE, registering a 1.84% gain. On NSE, the stock ended at ₹256.95, up by 1.88%. Over the last one year, ONGC‘s stock has delivered an impressive 31.80% return, though it did witness a 2.80% fall over the last six months.
The company’s market capitalization stands at ₹3.23 lakh crore, with its 52-week high at ₹345 and a low of ₹191.70. These figures highlight ONGC as a stable and potentially lucrative option for investors looking to capitalize on the energy sector.
Why Investors Should Keep an Eye on ONGC
Recent acquisitions prove that the company ONGC is quite strategic for securing a place in global markets. This increase in stakes related to ACG oil field and the BTC pipeline is bound to profit ONGC in the long-term revenue stream and enhanced productions.
Investors are, therefore, advised to monitor ONGC closely, especially as the company continues to execute its strategy for global expansion. With such a proven track record and ambitious plans, ONGC remains a promising investment in India‘s energy sector.
Conclusion
As with other bold steps towards strengthening their foreign operations, the latest on-stream move by ONGC relates to increases in stakes within the ACG oil field and BTC pipeline investments. The corporation is slated to make more significant forays into the global arena of energy at a spend of $60 million dollars. This opportunity is as good a time as it gets for an investor trying to evaluate its long term potential.
