With the Cabinet Committee on Economic Affairs giving a green signal, state run Oil and Natural Gas Corporation and Mittal Investment Sarl will sign an agreement shortly with the Kazakhstan Government for USD 400 million investment in the Satpayev oil field in the Caspian Sea.
Officials in the petroleum ministry said that the cabinet clearance has given the necessary push for the investment and a formal agreement would soon be signed.
Under the deal, ONGC Mittal Energy Ltd, the joint venture of ONGC Videsh and Mittal Investment Sarl will pay USD 26 million as signing amount to the Kazakhstan government for 25% stake in the Satpayev field. It will also pay USD 80 million as one-time assignment fee.
The two partners have also committed a minimum exploration investment of USD 165 million and an additional optional exploration expenditure of USD 235 million. Kazakh national oil firm KazMunaiGas will be the operator of the field, holding the remaining 75% stake.
Satpayev is situated in the highly prospective region of North Caspian Sea and in proximity to at least four fields. A peak output of 287000 barrels a day is envisaged from the field.
(Sourced from http://www.steelguru.com/news/index/2009/09/11/MTExMjA5/ONGC_Mittal_Energy_inks_pact_for_Satpayev_oil_field_in_Kazakhstan.html)
Thursday, September 10, 2009
ONGC Mittal Energy inks pact for Satpayev oil field in Kazakhstan
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