Kazakh government blocks Kashagan sale to ONGC Videsh

The government of Kazakhstan has pre-empted ONGC Videsh’s bid to acquire ConocoPhillips’ 8.4% stake in the North Caspian Sea production-sharing agreement, which includes the Kashagan field development.

Offshore staff

NEW DELHI, India – The government of Kazakhstan has pre-empted ONGC Videsh’s bid to acquire ConocoPhillips’ 8.4% stake in the North Caspian Sea production-sharing agreement (NCS PSA), which includes the Kashagan field development.

ONGC understands that the national oil company, KazMunayGaz (KMG), will be designated as the new buyer, on behalf of the state.

ONGC had finalized the definitive agreements for its acquisition last November, with no subsequent objections from the other co-venturers.

Kashagan, in shallow waters varying from below 5 m to 8 m (16-26 ft), is currently the world’s largest development project in scope. The partners are Eni, Total, Shell, ExxonMobil, and KazMunayGaz, each with 16.81% PI, while ConocoPhillips has PI of 8.40% and Inpex has 7.56%.

7/10/2013

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