Indian company to risk completely in Satpayev block exploring in Caspian Sea

Oil&Gas Materials 13 March 2009 20:00 (UTC +04:00)

Kazakhstan, Astana, March 13 / Trend K. Arinova /

The final agreement between Kazakh and Indian sides on Satpayev marine block situated in Kazakh part of the Caspian shelf will be signed during a month, Sauat Mynbayev, minister of energy and mineral resources said.

"I can not announce sum of the first subscription bonus as we have not exchanged by written agreements. We have preliminary coordinated terms of deal in the protocol. The final agreement has not been signed as it is early to announce sum of bonus. The agreement on Satpayev marine block must be signed during a month and we will announce this sum," Mynbayev said.

"Moreover, all expenditures on exploitation are financed by Indian side. So, Indian side completely risks as sums are significant," minister said.

Kazakh side will participate from the beginning of block's exploitation but Indian side completely risks, he said.

"Presently, intensive work on preparation and signing of documents on Satpayev block is conducted, Mynbayev said during the meeting.

"We are sure that both countries' companies will sign the contract on exploration and production in the nearest future," Murli Deora, Indian minister of petroleum and natural gas, said.

The agreement on principles between KazMunayGaz JSC and ONGC Mittal Energy Ltd about sale of 25 percent of stocks in Satpayev project of Indian company was signed during the Kazakh President Nursultan Nazarbayev's visit in Delhi on January 24.

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