New Delhi, September 20 - Neftegaz.RU. Indian ONGC Videsh plans to exit Kazakhstan's Satpayev block after it could not find commercially exploitable oil.
ONGC Videsh had completed the committed work programme to drill 2 wells but could not make a commercially viable discovery. The exploration campaign hasn’t met with much success, the ONGC official said.
Satpayev block spreads over an area of 1481 km2 and located in theshallow waters of the northern part of Caspian Sea. ONGC Videsh has a 25 % participating interest in the block and this interest is now being surrendered back to the Kazakhstan government.
The company paid $13 million as a signing amount to Kazakhstan and an additional $80 million as a one-time assignment fee to Kazakh KazMunayGas (KMG).
ONGC Videsh had been seeking access to Kazakhstan since 1995 and signed an initial agreement with KazMunayGas in February 2005, for cooperation in the hydrocarbon sector. Indian Prime Minister Narendra Modi had formally launched the drilling at Satpayev block in July 2015.