Hungary's MOL buys Chevron stake in Azeri oilfield for $1.57 billion

Hungary's MOL buys Chevron stake in Azeri oilfield for $1.57 billion

Hungarian energy firm MOL is buying Chevron’s stake in a giant oilfield in Azerbaijan for $1.57 billion, as U.S. majors retreat from the central Asian state after 25 years to refocus on production at home, Reuters reports.

MOL said on Monday the deal agreed with Chevron includes a 9.57% stake in the BP-operated Azeri-Chirag-Gunashli (ACG) field in the Caspian Sea and a 8.9% stake in the Baku-Tbilisi-Ceyhan pipeline that transports the crude to the Mediterranean.

Reuters first reported on the talks between MOL and Chevron last month.

“What this deal gives us is longevity and stability,” MOL’s executive upstream vice president Berislav Gaso told Reuters by telephone after MOL announced the transaction in a filing.

He said MOL will keep looking for acquisitions, but is “not in a rush” and any further steps will not be as big, with the aim on maintaining the ability to generate cash.

“I like barrels but I love dollars even more than that.”

He said the Azeri purchase will add about 20,000 barrels per day to MOL’s production guidance, which will rise to 120,000-130,000 barrels per day.

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