OMEL, KazMunaiGaz to jointly explore for hydrocarbons

Published: 28-Jan-2009

By: Staff Writer Staff Writer Staff Writer

ONGC Mittal Energy Limited and the national oil company of Kazakhstan, KazMunaiGaz, have signed a heads of agreement for exploration of oil and gas in the Satpayev Block in the Kazakhstan section of the Caspian Sea.

According to Oil and Natural gas Corporation (ONGC) the heads of agreement signed is in pursuance to the memorandum of understanding that was signed between OVL and KazMunaiGaz (KMG) in February 2005, for co-operation in the oil and gas sector of Kazakhstan.

The two companies are now actively pursuing together with the government of Kazakhstan for finalization of the exploration and production contract, said the company.

The Satpayev Block, situated in the Pre-Caspian Basin of Kazakhstan in the Caspian Sea, covers an area of 1,582sqkm and is at a water depth of 5m to 10m.

ONGC Mittal Energy (OMEL) is a joint venture between ONGC Videsh (OVL) and Mittal Investments.

Kazakhstan oil province claims to contribute 3.2% of oil and 1.1% of gas towards the world’s share of proved reserves. According to BP Statistical Review of World Energy, June, 2008, Kazakhstan's proved reserves are estimated to comprise 39.8 billion barrels of oil and proved gas reserves are 67.20 tcf as on December,2007 and the oil and gas production are 1,490 thousand b/d (2007) & 27.3 bcm (2007), respectively.

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