ONGC Mittal Energy Limited (OMEL) and KazMunaiGaz (KMG), National Oil Compay of Kazakhstan have signed a Heads of Agreement (HOA) for exploration of oil & gas in Satpayev Block, Caspian Sea, Kazakhstan. OMEL is a joint venture between ONGC Videsh Limted (OVL) and Mittal Investments Sarl. The HOA was signed on the 24th January, 2009, in the presence of the President of Republic of India and the President of the Republic of Kazakhstan, by Managing Director, OVL and the President, KMG. The HOA signed is in pursuance to the Memorandum of Understanding that was signed between OVL and KMG in February,2005, for cooperation in the oil and gas sector of Kazakhstan. The two Companies are now actively pursuing together with the Government of Kazakhstan for finalization of the Exploration and Production Contract.
The Satpayev block, situated in the Pre-Caspian Basin of Kazakhstan in Caspian Sea, covers an area of 1582 sq.km and is at a water depth of 5-10m. It is situated in a highly prospective region of North Caspian Sea and is in close proximity to major fields, like Karazhanbas, Kalamkas, Kashagan and Donga, where significant quantum of oil has been discovered.