New Delhi: The government has given Oil and
Natural Gas Corp (ONGC) nod to partner billionaire Lakshmi N
Mittal for buying out 25 per cent stake in Kazakhstan's
prospective Satpayev oilfield in the Caspian Sea.
ONGC Mittal Energy Ltd, the joint venture of ONGC Videsh
Ltd and Mittal Investment Sarl, plans to invest USD 400
million in the Satpayev oil field, official source said.
The Cabinet Committee on Economic Affairs last evening
gave OVL, the overseas arm of the state-run explorer, approval
to invest its share of USD 204 million in the oilfield.
OMEL will pay USD 26 million as signing amount to the
Kazakhstan government for 25 per cent stake in Satpayev field.
Besides, the partners will also pay USD 80 million as one-time
assignment fee, they said.
Over and above these, the two have committed a minimum
exploration investment of USD 165 million and an additional
optional exploration expenditure of USD 235 million.
Satpayev is situated in highly prospective region of
North Caspian Sea and in proximity to at least four fields. A
peak output of 287,000 barrels per day is envisaged from the
256 million tons of reserves in the field.
Kazakh national oil firm KazMunaiGas will be the operator
of the field, holding remaining 75 per cent stake.
OVL, the overseas arm of state-run ONGC, and Mittal
Investment Sarl are equal partners in OMEL.
Bureau Report
First Published: Friday, July 31, 2009, 19:01