India/Azerbaijan first reveals India's aggressive oil strategy

Author: Ashley Lee | Published: 20 Sep 2012

ONGC Videsh’s acquisition of Hess’ stakes in a Caspian oil field and associated Baku-Tbilisi-Ceyhan (BTC) pipeline reveals India’s investment strategy in the oil and gas sector.

ONGC Videsh is the international subsidiary of PSU Oil and Natural Gas Corporation. The transaction reflects the Indian public-sector undertaking’s (PSU) aggressive plan for a sevenfold increase in oil and gas output from overseas assets by 2030 to satisfy domestic needs.

The target oil fields - the Azeri, Chirag and the deep water portion of Guneshli Fields (ACG) – are sought-after assets. The deal affirms ONGC Videsh’s ability to compete against other oil and gas majors. The company purchased Hess’ 2.72% interest in the ACG fields and...