OVL to buy ConocoPhillips’ share of North Caspian PSA
28 Nov 2012 4:49 AM IST
ONGC Videsh Limited (OVL), the wholly owned subsidiary of India’s national energy company Oil and Natural Gas Corporation Ltd (ONGC), has finalised agreements for the acquisition of the 8.40 per cent participating interest (PI) of ConocoPhillips in the North Caspian Sea (NCS) production sharing agreement (PSA), which includes the Kashagan field in Kazakhstan.
The acquisition, subject to relevant government regulatory approvals, priority rights and consortium pre-emption rights, is expected to close in the first half of 2013.
The Kashagan field, located in the shallow waters of the Kazakh North Caspian Sea, is the world’s largest current development project.
Kashagan’s consortium partners are Eni, Total, Shell, ExxonMobil and KazMunaiGaz, each with 16.81 per cent PI. ConocoPhillips has 8.40 per cent PI and Inpex has 7.56 per cent. The acquisition would mark ONGC Videsh Ltd’s entry into the largest oil-proven North Caspian Sea of Kazakhstan. From Phase I, the acquisition is likely to add an average annual production of about 1.0 mmt for a period of over 25 years, with a peak of about 1.6 mmt.
When Phase II and III are implemented, ONGC Videsh Ltd’s share will be significantly higher.
The acquisition also bears a significant strategic importance to India in terms of contributing towards India’s energy security.
ONGC has recently formulated its Perspective Plan: 2030, envisaging that the oil and gas production of ONGC Videsh would increase from the current level of 8.75 mmtoe in FY’12 to 20 mmtoe by FY’18 and 60 mmtoe by FY’30. ONGC Chairman and Manging Director Sudhir Vasudeva said on this occasion that the current transaction is a major step towards achieving this goal.
Goldman Sachs is acting as exclusive financial advisor, Allen & Overy as legal advisor, Ernst & Young as tax and accounting advisor and bayphase as technical advisor to ONGC Videsh Ltd. At present, ONGC Videsh has E&P activities in 15 countries.
The acquisition, subject to relevant government regulatory approvals, priority rights and consortium pre-emption rights, is expected to close in the first half of 2013.
The Kashagan field, located in the shallow waters of the Kazakh North Caspian Sea, is the world’s largest current development project.
Kashagan’s consortium partners are Eni, Total, Shell, ExxonMobil and KazMunaiGaz, each with 16.81 per cent PI. ConocoPhillips has 8.40 per cent PI and Inpex has 7.56 per cent. The acquisition would mark ONGC Videsh Ltd’s entry into the largest oil-proven North Caspian Sea of Kazakhstan. From Phase I, the acquisition is likely to add an average annual production of about 1.0 mmt for a period of over 25 years, with a peak of about 1.6 mmt.
When Phase II and III are implemented, ONGC Videsh Ltd’s share will be significantly higher.
The acquisition also bears a significant strategic importance to India in terms of contributing towards India’s energy security.
ONGC has recently formulated its Perspective Plan: 2030, envisaging that the oil and gas production of ONGC Videsh would increase from the current level of 8.75 mmtoe in FY’12 to 20 mmtoe by FY’18 and 60 mmtoe by FY’30. ONGC Chairman and Manging Director Sudhir Vasudeva said on this occasion that the current transaction is a major step towards achieving this goal.
Goldman Sachs is acting as exclusive financial advisor, Allen & Overy as legal advisor, Ernst & Young as tax and accounting advisor and bayphase as technical advisor to ONGC Videsh Ltd. At present, ONGC Videsh has E&P activities in 15 countries.
Next Story
