ONGC Videsh Ltd (OVL), the overseas investment arm of state-owned Oil and Natural Gas Corp (ONGC), plans to exit Kazakhstan’s Satpayev block after it could not find commercially exploitable oil, an official said Tuesday.
OVL had in April 2011 bought 25 per cent of Satpayev oil block. It paid $13 million as a signing amount to Kazakhstan and an additional $80 million as a one-time assignment fee to JSC NC KazMunaiGas (KMG), the national oil company of Central Asian nation.
Satpayev was OVL’s entry into hydrocarbon-rich Kazakhstan. But its exploration campaign hasn’t met with much success, the official said. OVL, he said, drilled the committed two exploration wells on the block without any commercial hydrocarbon success.
As the prominent prospects in the block have been probed without any commercial hydrocarbon discovery, OVL decided to exit from the Satpayav contract after the expiry of the first extension of exploration phase on June 15 this year, he added. Read More
Latest posts by ET Energy World (see all)
- Sterlite Power commissions Rs 3,000 crore Kashmir transmission project - October 15, 2018
- High prices start hitting fuel demand, sales of diesel & petrol contracts in September - October 15, 2018
- India needs to make smooth, viable transition from coal: IPCC report - October 15, 2018