Press Esc to close
Sunday 05 July 2015
News updated at 10:37 PM IST
Weather
Max: 33°C
Min : 20°C
In Bengaluru
Partially cloudy

ONGC gets nod for $5 b Kashagan stake acquisition

New Delhi, Dec 6, 2012, PTI:

State-owned ONGC, which trumped a strong bid by arch-rival China National Petroleum Corp to bag ConocoPhillips' stake in Kazakhstan's giant Kashagan oilfield, has won project operator Eni's approval for its $5-billion acquisition.

In its biggest acquisition till date, ONGC Videsh Ltd, the overseas arm of Oil & Natural Gas Corp last month 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 India and also to other partners in the Caspian Sea field waiving their right of first refusal.

Industry sources said 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.

Sources said the partners have 60 days to decide on exercising their right of first refusal on ConocoPhillips' stake.

Once all the other five companies in the project waive their pre-emption rights, the deal will go before Kazakhstan government, which contractually has 180 days to clear it.
Sources said on the previous two occasions when companies sold out of Kashagan, the other partners pre-empted.

Originally, Kashagan field had Eni, BG Group of UK, ExxonMobil, Shell, Total and Kazakh government with 14.28 per cent stake each. BP had 9.52 per cent and Norway's Statoil 4.76 per cent.

Inpex of Japan and ConocoPhillips entered the consortium in 1998, purchasing Kazakhstan's 14.28 per cent share.

In 2001, when Total agreed to buy BP and Statoil's stakes, all other partners exercised their pre-emption rights and the stake was equally split among them. Subsequently, the shareholding in the project was -- BG, Eni-Agip, ExxonMobil, Shell and Total (16.67 per cent each), ConocoPhillips and Inpex (8.33 per cent each).


Go to Top

Photo Gallery
'Umbrella Workshop' where people paint umbrellas with colors in Navi Mumbai...

'Umbrella Workshop' where people paint umbrellas with colors in Navi Mumbai...

Visitors looking the BSF weapons on the occasion of the 50th anniversary of the BSF...

Visitors looking the BSF weapons on the occasion of the 50th anniversary of the BSF...

Mobile app ' Namma Bellad' launched in Bengaluru...

Mobile app ' Namma Bellad' launched in Bengaluru...

Sadhvi Niranjan Jyoti feeds cows during her visit to Gir Seva Goshala in Ahmedabad...

Sadhvi Niranjan Jyoti feeds cows during her visit to Gir Seva Goshala in Ahmedabad...

An highly decorated Vruksha hall during the 'BJP Maha Samparka Abhiyan 2015'...

An highly decorated Vruksha hall during the 'BJP Maha Samparka Abhiyan 2015'...

A fire broke out at Sony manufacturing plant in Navi Mumbai on Sunday...

A fire broke out at Sony manufacturing plant in Navi Mumbai on Sunday...

Pilgrims crosses the mountains as they move towards Amarnath Holy Cave Shrine...

Pilgrims crosses the mountains as they move towards Amarnath Holy Cave Shrine...

A Kashmiri Muslim woman offers noon prayers in the ruins of an ancient Hindu temple...

A Kashmiri Muslim woman offers noon prayers in the ruins of an ancient Hindu temple...

A security man keeps vigil on the mountains near Amarnath Holy Cave Shrine 3880 meters high...

A security man keeps vigil on the mountains near Amarnath Holy Cave Shrine 3880 meters high...

An Indian boy practices Mallakhamb, a traditional Indian gymnastic sport...

An Indian boy practices Mallakhamb, a traditional Indian gymnastic sport...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523