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.
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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.