Mirza Jatt
SENIOR MEMBER
Manmohan to sign agreement for 25 p.c. stake in Satpayev oil field in Kazakhstan
In yet another step towards securing energy sources for meeting the high demand for fossil fuel in the country, Prime Minister, Manmohan Singh will on April 15 reach Kazakh capital Astana, to sign an agreement which will give India 25 per cent stake in the Satpayev oil field on the Caspian Sea.
The deal, being negotiated by state-owned Oil and Natural Gas Corporation Videsh Limited (OVL), is expected to cost around $400 million (approximately Rs.1,800 crore). The deal will be signed during Dr. Singhs three-day visit for a bilateral summit meeting between India and Kazakhstan. Both countries are also expected to sign an agreement on civil nuclear cooperation also.
Under the proposed agreement, Kazakhstan will transfer 25 per cent stake in the Satpayev oil field to OVL and the balance 75 per cent will be held by Kazakhs national oil firm KazMunaiGas, which is the operator of the oil field. The contract was originally awarded to ONGC Mittal Energy Ltd consortium, a venture between OVL and Mittal group owned by Indian origin Lakshmi Narain Mittal. However, Mittal's decided to exit from the venture in 2009 leaving OVL to take control of the entire.
The Satpayev oil field is situated in the 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 tonnes of reserves in the field. OVL is likely to pay $26 million as signing amount to the Kazakhstan government in addition to the $80 million as a one-time assignment fee. Besides, OVL has committed a minimum exploration investment of $165 million and an additional optional expenditure of $235 million. The 1,582-Sq Km oil block holds 1.8 billion barrel of in place oil reserves.
The Hindu : Business / Industry : Manmohan to sign agreement for 25 p.c. stake in Satpayev oil field in Kazakhstan
In yet another step towards securing energy sources for meeting the high demand for fossil fuel in the country, Prime Minister, Manmohan Singh will on April 15 reach Kazakh capital Astana, to sign an agreement which will give India 25 per cent stake in the Satpayev oil field on the Caspian Sea.
The deal, being negotiated by state-owned Oil and Natural Gas Corporation Videsh Limited (OVL), is expected to cost around $400 million (approximately Rs.1,800 crore). The deal will be signed during Dr. Singhs three-day visit for a bilateral summit meeting between India and Kazakhstan. Both countries are also expected to sign an agreement on civil nuclear cooperation also.
Under the proposed agreement, Kazakhstan will transfer 25 per cent stake in the Satpayev oil field to OVL and the balance 75 per cent will be held by Kazakhs national oil firm KazMunaiGas, which is the operator of the oil field. The contract was originally awarded to ONGC Mittal Energy Ltd consortium, a venture between OVL and Mittal group owned by Indian origin Lakshmi Narain Mittal. However, Mittal's decided to exit from the venture in 2009 leaving OVL to take control of the entire.
The Satpayev oil field is situated in the 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 tonnes of reserves in the field. OVL is likely to pay $26 million as signing amount to the Kazakhstan government in addition to the $80 million as a one-time assignment fee. Besides, OVL has committed a minimum exploration investment of $165 million and an additional optional expenditure of $235 million. The 1,582-Sq Km oil block holds 1.8 billion barrel of in place oil reserves.
The Hindu : Business / Industry : Manmohan to sign agreement for 25 p.c. stake in Satpayev oil field in Kazakhstan
