Hess Corp. has agreed to sell its 2.72% interest in the Azeri, Chirag, and Guneshli fields (ACG) in Azerbaijan and its 2.36% interest in the associated BTC pipeline to ONGC Videsh Ltd. for $1 billion.

The transaction, expected to close 1Q 2013, is subject to Indian and other government and regulatory approvals. The BP-operated ACG fields, located in the Caspian Sea approximately 100 km (62 miles) east of Baku, started production in 1997.

“The sale of our interest in ACG is consistent with our strategy to divest mature and small working interest assets,” said Greg Hill, president of worldwide exploration and production for Hess. “Including this transaction, we have announced asset sales year-to-date totaling nearly $2 billion and additional asset sales are underway as part of our strategic portfolio reshaping.”