ONGC-Mittal JV acquires stake in Turkmenistan

New Delhi, Oct.22: ONGC Mittal Energy Ltd. (OMEL), a joint venture between ONGC Videsh Ltd. (OVL) and Mittal Investment Sarl (MIS), has acquired 30 percent Participating Interest (PI) in an exploratory Block 11-12, Offshore Turkmenistan in the Caspian Sea.

Covering an area of 5663 square km, the block is located close to discovered and producing fields, and contains a number of prospects with significant reserve potential. Discoveries have been made in adjoining areas such as Ashrafi and Karabakh.

The block was earlier awarded by the Government of Turkmenistan to Maersk Oil, in December, 2002. The consortium now comprises of OMEL with 30 percent Participating Interest (PI); Wintershall, a German company with 34 percent PI and Maersk Oil, a Denmark company with 36 percent PI. Earlier, Wintershall and Maersk had acquired seismic data and drilled one exploratory well in the block. The well had provided indications of hydrocarbons. Another well is planned to be drilled by the new consortium during 2008.

Turkmenistan block is the fourth asset of OMEL. OMEL had earlier acquired interest in a producing asset in Syria, currently producing about 130,000 barrels per day of oil. OMEL was also awarded two highly prospective blocks in Nigerian deepwater – OPL 279, in which OMEL has 40 percent PI and OPL 285 in which OMEL has 60 percent PI; other partners being TOTAL, the French oil major and EMO, a local Nigerian company. OMEL is pursuing hydrocarbon assets in certain other countries also, some of which are in an advanced stage of negotiations. OMEL"s constituent Mittal Investment Sarl (MIS) is owned by Steel baron L.N.Mittal.

ANI>