ONGC buys Hess stake in Azeri field for $1 billion

NEW YORK Sat Sep 8, 2012 2:39pm IST

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NEW YORK (Reuters) - Hess Corp (HES.N) agreed to sell its 2.72 percent stake in the large Azeri, Chirag and Guneshli group of oil fields in Azerbaijan as well as its 2.36 percent stake in an associated pipeline to India's ONGC (ONGC.NS) for $1 billion.

Hess said that ONGC's foreign investment arm ONGC Videsh ONGCVD.UL will buy the assets in a deal it expects to close in the first quarter of 2013. It is subject to Indian and other regulatory approvals.

The BP-operated ACG oilfields are in the Caspian Sea around 100 kilometers east of Baku.

Rothschild advised ONGC Videsh on the sale.

(This story corrects spelling of Rothschild in fourth paragraph)

(Reporting By Michael Erman)