India signs pact for 25% stake in Satpayev oil block

They represent solid and substantive outcomes in sectors where we have complementary strengths, Singh told reporters after the signing of the agreements

In a significant step towards achieving energy security,India today signed agreements with hydrocarbon-rich Kazakhstan,including one for acquisition of 25 per cent stake in its Satpayev exploration block in the Caspian Sea.

The $400 million package of three energy agreements was signed between ONGC Videsh Ltd (OVL) and Kazakhstans national company Kazmunaigas (KMG) during Prime Minister Manmohan Singhs visit here.

The pact enables acquisition of 25 per cent stake in KMGs Satpayev exploration block in the Caspian Sea which is spread over 1,482 sq km and is believed to have an estimated 1.75 billion barrels of oil reserves.

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They represent solid and substantive outcomes in sectors where we have complementary strengths, Singh told reporters after the signing of the agreements.

As currently there are no means to transport oil from Kazakhstan to India,any discovery in Satpayev may be sold locally by OVL which could use the cash generated from such transaction for purchases elsewhere.

The Carry Agreement signed as part of the package makes provisions for such transactions.

A Joint Operating Agreement on running the exploration block was also signed by OVL and KMG.

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Manmohan Singh

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