ONGC-Mittal JV buys 30% in Turkmenistan block

ONGC-Mittal JV buys 30% in Turkmenistan block


Mumbai: ONGC-Mittal Energy Ltd, the joint venture company formed by ONGC and Mittal Investment, has acquired a 30% participating interest in an exploration block in Turkmenistan for an undisclosed sum, the exploration major said on 22 October.

The exploratory block 11-12 in the Caspian Sea covers 5,663 sq km. “Discoveries have been made in adjoining areas such as Ashrafi and Karabakh," ONGC said in a statement.

Denmark’s Maersk Oil, which was initially awarded the block in 2002, now has 36% participating interest, followed by Wintershall, the oil and gas arm of German chemicals group BASF with 34%, ONGC said.

An exploratory well drilled by Maersk and Wintershall had showed indications of hydrocarbons, and another well is planned to be drilled by the new consortium in 2008, it said.

The ONGC-Mittal Energy joint venture owns four oil and gas properties, including a producing one in Syria and two deepwater exploration blocks in Nigeria.

Mittal Investment is owned by industrialist L.N. Mittal, who also owns Arcelor Mittal, the world’s largest steel company.

ONGC shares today closed .93% lower at Rs1,097 on the Bombay Stock Exchange.