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Updated: September 10, 2009 01:58 IST

OVL-Mittal sign pact with Kazkh Govt

Special Correspondent
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Lakshmi Narain Mittal during Leadership Conference of Arcelor Mittal in New Delhi. File Photo: Kamal Narang
Lakshmi Narain Mittal during Leadership Conference of Arcelor Mittal in New Delhi. File Photo: Kamal Narang

With the Cabinet Committee on Economic Affairs (CCEA) giving a green signal, state-run Oil and Natural Gas Corporation (ONGC) and Mittal Investment Sarl owned by Lakshmi N. Mittal will sign an agreement shortly with the Kazakhstan Government for $400 million investment in the Satpayev oil field in the Caspian Sea.

Officials in the Petroleum Ministry said 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 $26 million as signing amount to the Kazakhstan government for 25 per cent stake in the Satpayev field. It will also pay $80 million as one-time assignment fee.

The two partners have also committed a minimum exploration investment of $165 million and an additional optional exploration expenditure of $235 million. Kazakh national oil firm KazMunaiGas will be the operator of the field, holding the remaining 75 per cent 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 2.87 lakh barrels a day is envisaged from the field.

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