ONGC gets 25% in Kazakh Oil Field

India’s Flagship explorer ONGC’s overseas investment arm, ONGC Videsh,has sealed the deal to take a 25% stake in Kazakhstan’s Satpayev acreage in the Caspian Sea, marking India’s first firm foothold in the hydrocarbons-rich Central Asia.

OVL’s agreement with the Kazakh government for amending the contract formally makes it a stakeholder in the concession. It had on April 16 signed joint operating and assignment agreements with Kazakhstan’s KazMunaiGas Exploration Production for the stake. OVL has an option to raise its stake by a further 10% in case of a commercial discovery.

The agreement was signed by ONGC Videsh director (exploration) Joeman Thomas during the ongoing Indo-Kazakh Joint Council meeting in the Kazakh capital Astana. Minister of state for petroleum R P N Singh is leading the Indian delegation. OVL paid $13 million as a signing amount to Kazakhstan. In addition, it will pay $80 million as a one-time assignment fee to KazMunaiGas.

Month: Current Affairs - December, 2011