US oil company, Chevron, has sold its oil assets in Azerbaijan to Hungarian integrated oil and gas company, MOL Group, in a $1.57bn worth deal.
In a statement released by Chevron, the deal includes the sale of a 9.57% stake in the Azeri-Chirag-Gunashli oil fields. The fields produce 20,000 barrels of oil equivalent per day in 2019.
The American company also sold its 8.9% stake in the Baku, Tbilisi, Ceyhan oil pipelines, with the deal providing Chevron with much-needed finance at a time when the oil sector is undergoing a historic recession.
Chevron’s Executive Vice President, Jay Johnson, said the company regularly reviews its global portfolio to assess whether its assets are strategic and competitive.
Johnson said, “This sale is an important part of Chevron’s goal of achieving $5-10bn between 2018 and 2020.”
MOL was earlier due to acquire Chevron and Exxon Mobil’s shares in Azerbaijani oil fields, although it only succeeded in procuring those of Chevron. Exxon Mobil is still looking for a suitable buyer for its 6.8% stake in the fields.
The procurement process is expected to transform MOL into an international company and enhance its position in the core Commonwealth of Independent States. Half of the company’s production will now come from outside Central and Eastern Europe.
