India ready to set up joint ventures in Kazakhstan, says Moily
10 Jan 2013 6:12 AM IST
Petroleum & Natural Gas Minister Dr M Veerappa Moily has called for the setting up of joint venture projects in Kazakhstan for manufacturing finished products from their minerals & raw material, which can be exported to India.
He was addressing the 10th meeting of India Kazakhstan Inter-Governmental Commission (IGC) on Trade, Economic, Scientific, Technological, Industrial and Cultural Cooperation here on Wednesday.
‘Due to high transportation costs, it is not economical to import raw materials and unprocessed products from Kazakhstan,’ he added. ‘Hence, efforts should be made to set up joint ventures in Kazakhstan based on these raw materials to manufacture value-added goods which could be exported to India — particularly items like copper, titanium, magnesium, phosphates, potash, molybdenum, tantalum and other rare earths.”
The minister also expressed hope that OVL’s proposal to buy ConocoPhillips stake of 8.4 per cent in the Kashagan oil field would be favourably considered by the consortium partners and Kazakhstan Government.
In its biggest acquisition till date, ONGC Videsh Ltd (OVL), the overseas arm of state-owned explorer Oil and Natural Gas Corporation (ONGC), on November 26 last year agreed to pay US energy giant ConocoPhillips about $5 billion for the 8.4 per cent stake in Kashagan, the biggest oilfield discovery in over four decades. The deal is subject to the approval of governments of Kazakhstan and other partners in the Caspian Sea field waiving their right of first refusal.
Italy’s Eni, the operator of the first phase of the Kashagan oilfield that is due to start production in second quarter of 2013, has publicly stated that it will not pre-empt or block the sale. Eni, ExxonMobil of US, Royal Dutch Shell, France’s Total and Kazakhstan’s Kazmunaigas (KMG) hold 16.81 per cent stake each in the field, while Japan’s Inpex the remaining 7.56 per cent.
On Kazmunaigas exercising pre-emption rights, Kazakhstan Oil and Gas Vice-Minister Bolat Akchulakov told PTI. ‘It is a corporate decision. We are government and we are not responsible for corporate decision. It is corporate body and it is corporate policy.’ ‘As per law, companies (partners) have 60 days (from the date of the deal to decide on pre-emption rights) and the government has 180 days thereafter,’ added Akchulakov. India’s approval to the acquisition is likely by the month end.
Moily said, ‘Indian Oil & Gas companies have started exploring the possibilities of establishing direct transportation of hydrocarbons from Kazakhstan to India, which, if implemented would be considered a turning point in the region. Incidentally all the countries involved in this venture Kazakhstan, Uzbekistan, Afghanistan, Pakistan and India are members of CICA, an idea conceived by the great leader of Kazakhstan President Nazarbayev, who through his tireless efforts gave birth to this organisation in the very early days after independence.’
The Kazakh side at the IGC meeting was led by that country’s Oil and Gas Vice-Minister Bulat Akchulakov. The two Ministers signed an IGC Protocol after the conclusion of the India-Kazakhstan IGC meeting.
He was addressing the 10th meeting of India Kazakhstan Inter-Governmental Commission (IGC) on Trade, Economic, Scientific, Technological, Industrial and Cultural Cooperation here on Wednesday.
‘Due to high transportation costs, it is not economical to import raw materials and unprocessed products from Kazakhstan,’ he added. ‘Hence, efforts should be made to set up joint ventures in Kazakhstan based on these raw materials to manufacture value-added goods which could be exported to India — particularly items like copper, titanium, magnesium, phosphates, potash, molybdenum, tantalum and other rare earths.”
The minister also expressed hope that OVL’s proposal to buy ConocoPhillips stake of 8.4 per cent in the Kashagan oil field would be favourably considered by the consortium partners and Kazakhstan Government.
In its biggest acquisition till date, ONGC Videsh Ltd (OVL), the overseas arm of state-owned explorer Oil and Natural Gas Corporation (ONGC), on November 26 last year agreed to pay US energy giant ConocoPhillips about $5 billion for the 8.4 per cent stake in Kashagan, the biggest oilfield discovery in over four decades. The deal is subject to the approval of governments of Kazakhstan and other partners in the Caspian Sea field waiving their right of first refusal.
Italy’s Eni, the operator of the first phase of the Kashagan oilfield that is due to start production in second quarter of 2013, has publicly stated that it will not pre-empt or block the sale. Eni, ExxonMobil of US, Royal Dutch Shell, France’s Total and Kazakhstan’s Kazmunaigas (KMG) hold 16.81 per cent stake each in the field, while Japan’s Inpex the remaining 7.56 per cent.
On Kazmunaigas exercising pre-emption rights, Kazakhstan Oil and Gas Vice-Minister Bolat Akchulakov told PTI. ‘It is a corporate decision. We are government and we are not responsible for corporate decision. It is corporate body and it is corporate policy.’ ‘As per law, companies (partners) have 60 days (from the date of the deal to decide on pre-emption rights) and the government has 180 days thereafter,’ added Akchulakov. India’s approval to the acquisition is likely by the month end.
Moily said, ‘Indian Oil & Gas companies have started exploring the possibilities of establishing direct transportation of hydrocarbons from Kazakhstan to India, which, if implemented would be considered a turning point in the region. Incidentally all the countries involved in this venture Kazakhstan, Uzbekistan, Afghanistan, Pakistan and India are members of CICA, an idea conceived by the great leader of Kazakhstan President Nazarbayev, who through his tireless efforts gave birth to this organisation in the very early days after independence.’
The Kazakh side at the IGC meeting was led by that country’s Oil and Gas Vice-Minister Bulat Akchulakov. The two Ministers signed an IGC Protocol after the conclusion of the India-Kazakhstan IGC meeting.
Next Story
