OVL Buys 25% Stake in Kazakh Oil Block

19 April 2011 (Last Updated April 19th, 2011 18:30)

India's state-run Oil and Natural Gas Corp Videsh (OVL) has purchased a 25% stake in an oil block in Kazakhstan. OVL bought a portion of the Satpayev offshore block in the Caspian Sea under a deal signed between OVL and Kazakh state oil firm KazMunaiGas (KMG). Under the tran

India’s state-run Oil and Natural Gas Corp Videsh (OVL) has purchased a 25% stake in an oil block in Kazakhstan.

OVL bought a portion of the Satpayev offshore block in the Caspian Sea under a deal signed between OVL and Kazakh state oil firm KazMunaiGas (KMG).

Under the transaction, OVL will pay $80m to KMG.

Kazakh Oil and Gas Minister Sauat Mynbayev said the entire exploration programme will be funded by the Indian company.

Delhi has allotted a total investment of up to $400m for the Satpayev block, reports Reuters.

The block is expected to have a peak output of 287,000 barrels per day.