Azernews.Az

India's ONGC Videsh Ltd. (OVL), which is a 100% subsidiary of Oil and Natural Gas Corporation Limited (ONGC), has raised $800 million to part-finance its recent acquisition of interest in Azerbaijan, ONGC Videsh reported on Tuesday.

In a statement on itsl website ONGC Videsh said that the Reg S Notes priced $300 million in 5-year tenor and $500 million in 10-year tenor and were rated Baa2/BBB-(Moody's/S&P). The Notes are unconditionally and irrevocably guaranteed by ONGC.

OVL will apply the net proceeds to replace bridge financing availed for acquisition of participating interests in upstream and midstream oil and gas assets in Azerbaijan which was completed in March, the statement said.

In early April ONGC Videsh announced the completion of acquisition of Hess Corporation's 2.7213% participating interest in the development project of Azeri Chirag Guneshli (ACG) oil fields in the Azerbaijan sector of the Caspian Sea and 2.36% interest in the Baku-Tbilisi-Ceyhan Pipeline (BTC).

The transaction value is $1 billion.

Production at Azeri-Chirag-Guneshli oil fields, 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.