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.

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.

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.