Prime Minister Narendra Modi and Kazakhstan President Karim Massimov launched the first exploratory drilling of the Satpayev oil block by India’s OVL and KazMunaiGaz.
ONGC Videsh Ltd. (OVL) which is the overseas arm of state-run ONGC, had acquired 25% stake in the Satpayev oil block in the North Caspian Sea in 2011.
OVL has committed to investing $400 million in exploration in the block. It will also pay $80 million to Kazakhstan’s KazMunaiGas as a one-time assignment fee.
India will conduct a feasibility study on importing crude oil and gas from Kazakhstan either through a pipeline or as liquid natural gas in ships.
Crude oil can be brought first to Iran via the Caspian Sea and transported across the country through a pipeline.
About Satpayev Oil Block
- The Satpayev oil block is an offshore field in the Northern Caspian Sea, which has an estimated reserves of 1.8 billion barrels.
- OVL is expecting to drill out peak output of 2 lakh 87 thousand barrels per day.