News 2012#6 (78), December 2012
American oil and gas company ConocoPhillips has notified the authorities of
Kazakhstan and the partners in the project for the development of the giant oil field
Kashagan on its intention to sell a share in the Production Sharing Agreement on Northern Caspian (PSANC), comprising 8.4 %, to the Indian ONGC Videsh Limited. Press-release of ConocoPhillips informs about it.
ONGC Videsh (the international division of Indian State Oil and Natural Gas Corporation) will acquire a share of ConocoPhillips in the Kashagan project under condition of obtaining all necessary permits from the Kazakhstan authorities and after the refusal of the republic and partners in PSANC to execute their priority rights to the purchase.
The oil and gas company expects that the deal will be completed in the first half of 2013. The company expects to receive about $5 billion from the sale including actually the price of the deal plus some corrections.
The Kashagan field opened in 2000, has become the world’s largest oil field discovered in the last 30 years. Its commercial reserves, in the estimates of experts, are from 9 billion to 13 billion oil barrels.
The field is located in the Kazakhstan sector of the Caspian Sea and occupies the area of approximately 75 x 45 km. The project participants are Eni, KMG Kashagan B.V. (subsidiary of KazMunayGas), Total, ExxonMobil, Royal Dutch Shell (hold 16.81 % each), ConocoPhillips (8.4 %) and Inpex (7.56 %).