Indian company’s purchasing shares in Kazakh Satpaev project is up in the air

Oil&Gas Materials 21 January 2009 12:43 (UTC +04:00)

Kazakhstan, Astana, Jan. 21/ Trend , K.Konirova/

Estimates of the Indian New Delhi publication on ONGC Videsh's purchase of 30-40 percent stakes in Satpaev project in the Kazakh section of the Caspian offshore area are too optimistic, an Indian expert preferring to keep his anonymity told Trend correspondent in Astana.

On Jan. 15 New Delhi published an article that ONGC Videsh is close to sign a deal to purchase 30-40 percent of shares in Satpaev project in the Caspian Sea. An agreement may be inked during the Kazakh President's visit to India on Jan. 23.

Recently, a delegation of Indian officials, including experts on energy issues, has visited Astana on threshold of the Kazakh President's official visit to Delhi.

"I think, none of decisions will be made on new purchase by elections to be held in India in April-May. Everything will depend on a new president. As to purchase in Satpaev project, New Delhi was too optimistic on this matter. I do not share this optimism personally," the expert said.

ONGC has great opportunities and at present the company is examining different plans, he said.

"But as far as I know, recently the company has realized purchase by $2 billion. This is Imperial Oil Company in London which has some oil and gas interests in Russia. Therefore, I'm not sure that ONGC currently will be prepared to realize new purchase," the Indian expert said.

He reminded that there is a strict system of accounts and tenders on purchase in India.

"Indian companies cannot spend money without thinking and purchase without account. Although ONGC possesses some funds as the Indian government. Everything depends on interest," he said.

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