OVL to acquire 33 per cent stake in two Caspian blocks

Mumbai: ONGC Videsh Ltd, the overseas arm of Oil and Natural Gas Corporation, will acquire a 33-per cent stake in two offshore blocks in the Caspian Sea of Turkmenistan for up to Rs200 crore.

"We have concluded a deal with Denmark's Maersk Oil and German oil and gas firm Wintershall for taking up to 33 per cent stake in Block 11 and 12 in offshore Turkmenistan," OVL managing director R S Butola said.

"We are waiting for the Turkmenistan government's approval. Once that is obtained we will sign a production sharing contract," he said.

Butola said OVL was likely to sign a deal with Maersk Oil and Wintershall within a month's time. The deal had to wait as Turkmenistan's president, Saparmurat Niyazov died last month, he pointed out.

Maersk Oil is the operator of the blocks, which cover about 5,663 sq km, with an 80 per cent stake. Wintershall, a unit of the BASF chemicals group, owns the remaining 20 per cent stake.