ExxonMobil has also been looking to sell its slightly smaller stakes in the same assets, both of which are operated by BP, as the US majors pare back non-core assets.
In a statement, MOL said the purchase would strengthen its position in the Commonwealth of Independent States and would mean half the company's upstream production would come from outside Central and Eastern Europe.
It noted the ACG field, with around 3 billion barrels of reserves, had produced 584,000 b/d of crude oil last year, only a slight decline on the previous year, and the license had been extended to 2049 under a deal agreed in 2017.
It described the field as a "low-cost producing asset, which would be breaking even in a lower-oil price environment, with limited investment needs."
The deal, which will have an effective date of January 1, 2019 and should be completed in the second quarter next year, "is a significant milestone in building our international Exploration & Production portfolio, in one of our core regions, the CIS, where we will team up with world-class partners," MOL CEO Zsolt Hernadi said.
Azerbaijan's oil production is seen as broadly in decline, but has been supported by continued investment at the ACG complex, including a $6-billion investment in new facilities announced in April.
Chevron announced Friday a 25% cost increase in an expansion project at Tengiz intended to lift output to around 900,000 b/d, as well as a delay of about a year to the project.
Author: Nick Coleman
