Daily Management Review

Chevron subsidiaries sell assets in Azerbaijan


Chevron’s subsidiaries sold their shares in oil assets in Azerbaijan for $ 1.57 billion to the Hungarian MOL, the American oil company said.

Josh Smith via flickr
Josh Smith via flickr
"Chevron Corporation today announced that its subsidiaries sold their non-operating shares in the Azeri–Chirag–Gunashli (ACG) oil field... and the Baku-Tbilisi-Ceyhan (BTC) oil pipeline, located in Azerbaijan, to the Hungarian MOL for $1.57 billion," the company said.

In early November, the Hungarian energy company MOL signed a contract with Chevron Global Ventures Ltd. and Chevron BTC Pipeline, Ltd to purchase these shares. According to the contract, MOL becomes the owner of a 9.57% stake in Chevron in ACG and an 8.9% stake in BTC.

The total length of the BTC pipeline is 1768 kilometers, of which 443 kilometers lie through Azerbaijan, 249 kilometers - through Georgia, 1076 kilometers - through Turkey. The construction of the pipeline began in April 2003, and its filling with oil - on May 18, 2005. The first BTC oil was loaded into a tanker in the summer of 2006. The pipeline’s pumping capacity is 1.2 million barrels per day.

Chevron is the second largest US oil and gas company. The corporation operates in more than 180 countries. The net profit of the company attributable to the parent organization, according to the results of last year, amounted to $ 2.924 billion, which is five times less than the year before last year.

source: businesswire.com