The Hindu Business Line : Kazakhstan offers stake in Satpayev oil block

THE MINISTER for Petroleum and Natural Gas, Mr Murli Deora, and the Minister for Energy of Kazakhstan, Mr Baktykozha Izmukhambetov, at a meeting in the Capital on Friday. — Kamal Narang

New Delhi , Oct 13

The bid by ONGC Videsh Ltd (OVL), the overseas arm of ONGC, to acquire stake in Kazakhstan's Satpayev block in Caspian Sea may witness some tough negotiations.

While offering a stake in the oil block, Kazakhstan today sought India's support for its entry into the WTO but maintained that the support for joining WTO was not a `conditionality' for giving a stake in the oil block.

Speaking to newspersons after the meeting of the Indo-Kazakh Joint Commission, the Minister of Energy and Mineral Resources, Mr Baktykozha Izmukhambetov, said: "This is not a conditionality, but an issue which is a part of negotiations between the two countries."

According to Kazakhstan, India had sought the oil block without a tender and on the same footing Kazakhstan wants support for joining the WTO.

OVL and Mittal combined have been offered 20-25 per cent stake in the Satpayev exploration block, a deviation from the original offer of 50 per cent stake in either Satpayev or Makhambet blocks to OVL.

The Kazakh Minister said that as per the law in his country, 20-25 per cent stake can be given to a foreign company undertaking exploration.

In case oil and gas is found, then the Kazakh Government gets 50 per cent of the production.

Mr Izmukhambetov said that the Indian firms would work with Kazakh national company KazMunaiGaz, which will have right to 50 per cent of the oil production.

Inviting the Indian business community to invest in Kazakhstan, he said that there is complete transparency in decision-making. "When Kazakhstan joins the WTO, MNCs will be able to operate within well-defined and transparent laws."

While refusing to comment on Kazakhstan's demand, Petroleum Minister Mr Murli Deora said: "We have agreed to have a timetable on finalisation of the Satpayev project, which is a positive development. We are happy to note that a small beginning has been made in the required direction and Satpayev block in the Caspian Sea has been identified for joint collaboration."

Besides oil and gas, Kazakhstan has invited Indian firms to invest in petrochemicals, textile, metallurgical and aluminium plants being planned in special economic zones.

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