ONGC-Mittal (OMEL), a
JV between ONGC Videsh (OVL) and Mittal Investment Sarl will be signing a deal
on 24 January 2009 to acquire 25 per cent stake in Kazakhstan's Satpayev oil
field in the Caspian Sea. Kazakhstan's state-owned KazMunaiGas (KMG) will hold
the remaining 75 per cent stake in Satpayev.
Initially, OVL was to
get 50 per cent stake in either of the Satpayev and Makhambet blocks in the
Caspian Sea identified by Kazakhstan. However, the stake on offer was reduced to
25 per cent as OVL tied up with Mittal for entry. In 2007, OVL made a commercial
proposal to KMG, but in subsequent negotiations, KMG did not agree on the
percentage of stake OVL would get. It also did not agree on operatorship to OVL
during the exploratory and appraisal stages.