Chevron Corporation headquarters in San Ramon, California. Credit: Coolcaesar.

Oil and gas company MOL has completed its previously announced acquisition of certain assets in Azerbaijan from Chevron’s affiliate companies for $1.57bn.

The deal closed more than five months after the companies entered into an agreement to execute the transaction.

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As part of the agreement, MOL acquired a 9.57% interest in Azeri-Chirag-Deepwater Gunashli (ACG) oil fields from Chevron Global Ventures and an 8.9% stake in Baku-Tbilisi-Ceyhan (BTC) pipeline from Chevron BTC Pipeline.

With the transaction now complete, MOL became the third-largest partner in ACG, a BP-operated oil field in the Caspian Sea.

In 2018, the offshore oil field produced an average of 584,000bpd. Last year, it had a daily net production of 20,000 barrels on an average.

BTC pipeline is used to transport crude to the Mediterranean port of Ceyhan.

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At the time of the announcement, MOL Group chairman and CEO Zsolt Hernádi said: “This major $1.57bn transaction is a significant milestone in building our international E&P portfolio, in one of our core regions, the CIS, where we will team up with world-class partners.”

On the other hand, the deal was part of Chevron’s divestment programme.

Chevron upstream executive vice-president Jay Johnson said: “Chevron regularly reviews its global portfolio to assess whether assets are strategic and competitive for capital.

“This sale is an important part of our divestment programme, which is targeting before-tax proceeds of $5bn to $10bn between 2018 and 2020.”

Last month, Chevron announced that it will cut one-fifth of its capital expenditure this year, due to the economic impact of Covid-19.