London firms advise on billion dollar Azerbaijan oil deal

London law firms Allen & Overy and Simmons and Simmons have both been involved in a deal which will see India's Oil and Natural Gas Corporation (ONGC) acquire a stake in an Azerbaijan oil field.

The ONGC’s international arm ONGC Videsh acquired a 2.72 per cent stake in the Azeri, Chirag and Guneshli Fields, in addition to a 2.36 per cent in the Baku-Tbilisi-Ceyhan (BTC) pipeline from American oil giant Hess.

Debut investment

Simmons advised ONGC Videsh while magic circle firm Allen & Overy represented Hess. Central Asian Grata Law Firm acted as local counsel to ONGC Videsh, according to Asian Legal Business Online.

Hong Kong-based partners Tom Deegan and Vivien Yang led the Simmons team. Mr Deegan commented: ‘We are delighted to have assisted ONGC Videsh on its debut investment in Azerbaijan, and the acquisition of its first oil producing asset in Central Asia. It represents a significant strategic move for the company, as well as for India.’

The acquisition is subject to government and regulatory approvals and is expected to close in the first quarter of 2013.