OVL raises $800 million to part-finance oilfield in Azerbaijan
Quotes

OVL raises $800 million to part-finance oilfield in Azerbaijan

Last Updated: Tuesday, April 30, 2013, 13:45
 
 Comment 0
 
OVL raises $800 million to part-finance oilfield in Azerbaijan
New Delhi: ONGC Videsh Ltd, the overseas arm of state-owned Oil & Natural Gas Corp (ONGC), today said it has raised USD 800 million to part-finance its recent acquisition of interest in an oilfield in Azerbaijan.

OVL floated a 5-year tenor USD 300 million unsecured bond and a 10-year Note for USD 500 million.

The Notes, which were unconditionally and irrevocably guaranteed by ONGC, were "over-subscribed with an order book aggregating close to USD 3 billion from high quality investor accounts," the company said in a statement here.

OVL priced the 5-year tranche Reg S at US Treasury plus 200 basis points and the 10-year at T plus 230 bps. The 10-year bond will bear fixed coupon of 3.75 percent per annum while the 5-year note will bear 2.5 percent per annum.

OVL said it will use the proceeds to replace bridge financing availed for acquisition of stake in the Azerbaijan field.

The company had last month concluded a USD 1.001 billion deal to buy US energy major Hess Corp's 2.7213 percent stake in the Azeri, Chirag and the deepwater portion of Guneshli fields in the Azerbaijan sector of the Caspian Sea and 2.36 percent of the associated Baku-Tbilisi-Ceyhan (BTC) pipeline.

OVL Managing Director D K Sarraf said, "We are delighted with the strong interest shown by top global investors in OVL's inaugural bond issue. While this was the largest RegS issuance from India, the transaction was well executed to achieve the lowest pricing in the 5-year and 10 year tenor in the USD bond market by an Indian issuer."

"High participation by real money investor demonstrates the superior quality of the order book and the confidence of global investors in the fundamentals of the company," he said.

The Azerbaijan acquisition was OVL's biggest since 2009 when it bought UK-listed Imperial Energy Plc for USD 2.1 billion.

The oilfield which is located in the south Caspian Sea, about 95 km off the coast of Azerbaijan, is the largest oil and gas field complex in Azerbaijan and one of the largest producing oil fields in the world. UK?s BP Plc operated field produces around 700,000 barrels a day (35 million tons per annum) of crude oil. This is more than India's annual oil production.

OVL's share of output would be a little less than 1 million tons per annum. The acquisition would bring 9 percent additional proved reserves to OVL.

While the oilfield has total reserves of over 6.5 billion barrels, the 1,768 km BTC pipeline is one of the main export routes for Caspian crude oil production to the Ceyhan terminal in the Mediterranean Sea in south east Turkey, with a capacity of around one million barrels per day.

PTI



First Published: Tuesday, April 30, 2013, 13:45


Comments


comments powered by Disqus
Google I/O 2014
Google I/O 2014
Maker Faire @ White House
Maker Faire @ White House
Amazon unveils 3D `Fire` smartphone
Amazon unveils 3D `Fire` smartphone
RIL`s 40th AGM
RIL`s 40th AGM
Samsung Galaxy Tab S
Samsung Galaxy Tab S

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved