ONGC-Mittal Energy buys 30 per cent in Caspian Sea block

22 October 2007

Mumbai: ONGC-Mittal Energy Ltd, a joint venture between state-run ONGC Videsh Ltd and steel baron Lakshmi N Mittal`s holding firm Mittal Investment SARL, has acquired 30 per cent stake in an exploration block in the Caspian sea, off the Turkmenistan coast.

"Covering an area of 5,663 sq km, the block is located close to discovered and producing fields, and contains a number of prospects with significant reserve potential," OMEL said in a press release without giving the acquisition cost.

The block 11-12 was earlier awarded by the government of Turkmenistan to Maersk Oil in December 2002. German company Wintershall later acquired 34 per cent in the block.

Maersk and Wintershall had acquired seismic data and drilled one exploratory well in the block. The well had provided indications of hydrocarbons. Another well is planned to be drilled by the new consortium during 2008.

Discoveries have been made in adjoining areas such as Ashrafi and Karabakh, the release said.

The oil block now is owned by a consortium comprising OMEL with 30 per cent stake, German company Wintershall with 34 per cent and Denmark`s Maersk Oil with 36 per cent participating interest, the statement said.