MONGC Mittal Energy Limited (OMEL) and KazMunaiGaz (KMG), National Oil Compay of Kazakhstan signed a Heads of Agreement (HOA) for exploration of oil & gas in Satpayev Block, Caspian Sea, Kazakhstan. OMEL is a joint venture between ONGC Videsh Limted (OVL) and Mittal Investments Sarl. The HOA was signed January 24, 2009, in the presence of the President of Republic of India and the President of the Republic of Kazakhstan, by Managing Director, OVL and the President, KMG.
The HOA signed today is in pursuance to the Memorandum of Understanding that was signed between OVL and KMG in February 2005, for cooperation in the oil and gas sector of Kazakhstan. The two Companies are now actively pursuing together with the Government of Kazakhstan for finalization of the Exploration and Production Contract.
The Satpayev block, situated in the Pre-Caspian Basin of Kazakhstan in Caspian Sea, covers an area of 1582 sq.km and is at a water depth of 5-10m. It is situated in a highly prospective region of North Caspian Sea and is in close proximity to major fields, like Karazhanbas, Kalamkas, Kashagan and Donga, where significant quantum of oil has been discovered.
Kazakhstan is an important oil province of the world and contributes 3.2% of oil and 1.1% of Gas towards the World's share of Proved Reserves. According to BP Statistical Review of World Energy, June, 2008,Kazakhstan's Proved reserves are estimated to comprise 39.8 billion barrels of Oil and Proved Gas Reserves are 67.20 tcf as on December,2007 and the Oil and Gas production are 1,490 thousand b/d (2007) & 27.3 bcm (2007), respectively. Kazakhstan has the Caspian region's largest recoverable crude oil reserves and its production accounts for half of the currently being produced from the Caspian Sea region.
The Major players, which are active in upstream sector of Kazakhstan are Karachaganak Petroleum Operating, TengizChevroil, KazMunayGaz, CNPC, North Caspian Consortium, and Lukoil.
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