Videsh Limited signed definitive agreements for acquisition of 25% participating interest in Satpayev exploration block with KazMunaiGas, the national oil company of Kazakhstan on16thApril, 2011 at Astana, Kazakhstan in presence of Hon’blethe Prime Minister of India and the President of Kazakhstan.
With signing of this project OVL has strengthened its position further and now it holds 33 projects in 14 countries.
Satpayev exploration block, located in the Kazakhstan sector of the Caspian Sea, covers an area of 1482 sq.km and is at a water depth of 6-8 mts. It is situated in a highly prospective region of North Caspian Sea and is in close proximity to major discoveries. The block contains two prospective structures, namely Satpayev and Satpayev Vostochni (East)with 256 MMT in estimated hydrocarbon resources.
This transaction marks the entry of OVL in Kazakhstan hydrocarbon sector. Although OVL has been trying to gain a foothold in Kazakhstan since 1995, the efforts got a boost when OVL entered into a Memorandum of Understanding (MOU) with KazMunaiGas (KMG) in February 2005 for cooperation in the hydrocarbon sector. Following the MOU, OVL studied two exploration blocks jointly with KMG and selected Satpayev Block for exploration and development with KMG. Heads of Agreement (HOA) was signed between OVL and KMG on 24th January 2009 during the visit of the President of Kazakhstan to India. The Exploration Contract was signed between Ministry of Oil and Gas, Kazakhstan and KMG on 15thJune, 2010. Now on signing of the definitive agreements, KMG will assign 25%participating interest in Satpayev Block to OVL as strategic foreign partner in the Project.
Kazakhstan is important to world energy markets because it has significant oil and natural gas reserves.As per some estimates it is set to become one of the world’s top ten oil producers by 2025, and one of the top three non-OPEC contributors to production growth.Oil production in Kazakhstan has increased from410,000 b/d in 1995 to 1.7 million b/d in 2010.Sales gas production reached 2.1 bcfd in 2010.
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Source:OVL, April 18, 2011;