The empowered panel of secretaries has recommended to the union cabinet approval for ONGC Videsh's proposed $400 million investment in developing an oil field in Kazakhstan.
ONGC Videsh Ltd along with steel baron Lakshmi N Mittal will pick up a 25 per cent stake in the Satpayev oil block, official sources said.
ONGC-Mittal Energy Ltd, the 50:50 joint venture between OVL and Mittal Investment, will pay $26 million signing amount for taking a 25 per cent stake in Satpayev oil field.
The 1,582 sq km Satpayev block, situated in the Pre-Caspian Basin of Kazakhstan, holds 1.75 billion barrels of in place oil reserves. The block is situated close to major oil finds like Karazhanbas, Kalamkas, Kashagan and Donga.
KazMunaiGas will be the operator of the field and hold the remaining 75 per cent stake.
ONGC Mittal Energy Limited (OMEL) and KazMuaniGas (KMG) entered into an agreement on 24 January 2009 for exploration of oil and gas in Satpayev Block in Caspian Sea, Kazakhstan.
The HOA was in pursuance to the memorandum of understanding signed between OVL and KMG in February,2005, for cooperation in the oil and gas sector of Kazakhstan. The two companies are now actively pursuing together with the government of Kazakhstan for finalisation of the exploration and production contract.