Kazakh field: OVL, Mittal can join hands

Industry:    2016-04-03

Decks have been cleared for ONGC Videsh Ltd, the overseas investment arm of ONGC, to partner with Mittal Investments for acquiring stake in Satpayev oilfield in Kazakhstan.

The Cabinet Committee on Economic Affairs (CCEA) on Thursday allowed OVL to partner with L.N. Mittal’s private investment company for buying 25 per cent stake in Kazakhstan’s prospective Satpayev oilfield.

Official sources said ONGC Mittal Energy Ltd (OMEL) plans to invest $400 million in the oil field.

OVL has been given the nod to invest its share of about $200 million.

OMEL is the joint venture between Mittal Investments Sarl, the private investment company of the Mittal family, and OVL, the overseas investment arm of ONGC.

KazMunaiGas will be the operator of the field, holding the remaining 75 per cent stake. Satpayev is situated in North Caspian Sea.

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