India is well on the road to achieving energy security. After three years of tough negotiations, the Oil and Natural Gas Corporation (ONGC) may finally pick up a 30-40 per cent stake in a prospective oil field in the Caspian Sea the Satpayev block in Kazakhstan.
The oil field, which according to conservative estimates, holds around 1.6 billion barrels of oil has been on India’s radar for over three years now. As India imports 80 per cent of its crude oil requirements, securing a 40 per cent stake in the property will not only bring India close to achieving its energy security plans but will also give it an edge over its Korean and the Chinese competitors, who too are ready to snap the property.
Petroleum secretary and OVL managing director are in Astana to conclude the agreement. If the deal goes through, OVL will sign the agreement during the visit of Kazakhstan President Nursultan Nazarbayev, who is the chief guest at the Republic Day Parade this year.
Asked to comment, ONGC’s chairman and managing director RS Sharma said, “We need to wait to see the outcome of talks in Astana.”
Kazakhstan has went back and forth several times on its commitment to give ONGC a stake.