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| NOTE ON SATPAYEV EXPLORATION BLOCK, KAZAKHSTAN |
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November 18, 2009
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Satpayev Exploration block is located in a hydrocarbon prolific region of North Caspian Sea at a water depth of 5 to 10 metres, 100 km to the South Western coast of Kazakhstan. ONGC Videsh Limited (OVL) has been pursuing exploration opportunities in Kazakhstan and Satpayev block was identified by OVL and KazMunayGas(KMG), National oil company of Kazakhstan for joint exploration as a result of MOU signed by both the companies. However, Mittal Investment Sarl (MIS) later joined the project and the same was brought in to the fold of ONGC Mittal Energy Limited (OMEL), a joint venture between MIS and OVL.
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A Heads Of Agreement (HOA) was signed in January, 2009 between ONGC Mittal Energy Limited (OMEL) and KMG with broad commercial principles and for a 25% participating Interest to OMEL in the block. MIS had also simultaneously offered participation to OVL in to their share in the Caspian Investment Resources Limited (CIRL) in Kazakhstan and offered the CIRL asset in to OMEL. OVL examined the proposal and conveyed its non-interest in joining the project.
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MIS has now conveyed to OVL that they would not be participating in the Satpayev Exploration Block through OMEL., however, OMEL JV would continue to look for other investment opportunities as per JV Agreement. As a Consequence, OVL will be the sole partner of KMG and replace OMEL in the Satpayev Exploration & Production contract with the participating Interest of 25%. Signing of the Exploration and Production agreement is awaiting approval of the Government of Kazakhstan which is expected to be received shortly.
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Corporate Communications
New Delhi
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