News 2011
#6 (72) Decemver, 2011Satpayev
ONGC Videsh Limited (OVL), JSC NC KazMunayGas (КМG) and the Ministry of Oil and Gas of the Republic of Kazakhstan (МOG) signed a tripartite agreement on the transfer of a 25 % interest in Block Satpayev to the Indian company. The agreement was signed by Joeman Thomas, director of ONGC on exploration, Sauat Mynbayev, Minister of Oil and Gas of the RК, and Bolat Alchulakov, KMG’s president, in the presence of the State Minister of Oil and Gas of India Shri Singh, in Astana on October 12, 2011.
It is expected that production will be commenced in 2020. The potential of the block’s oil resources is estimated at 1.8 billion barrels, informs OVL. The government of India has approved a general plan for investments into the structure Satpayev worth $400 million. This amount includes $80 million for a share in the block.
The Satpayev site is located in the northern part of the Kazakhstan sector of the Caspian Sea at a distance of 90 km from the coast, 160 km from the port of Atyrau. The depth of water is 7-10 m. In June 2010, the exploration and production contract was concluded between МOG RКand КМG for the Satpayev site. In accordance with the intergovernmental high-level arrangements between Kazakhstan and India, KMG is currently in negotiations with the Indian party on arranging the package of documents under the deal.
According to them, it is planned to concede a 25 % interest in the project Satpayev to the Indian party and to work over establishing an operating company under the project.