ONGC Videsh has revealed that it has agreed to spend US$ 5 billion on acquiring ConocoPhillip’s stake in the Kashagan project offshore Kazakhstan.
The purchase is a new record for the Indian company as it continues to look to boost its output to reach a 2030 target of 60 million tpa. Once the deal has been fully approved, it is expected to result in a boost in the company’s output of 1 million tpa, with a peak of 1.6 million tpa, with significant growth predicted for the future.
Although the deal is underway, it is currently far from guaranteed as Conoco’s other partners in Kashagan (KazMunaiGas, Eni, ExxonMobil, Inpex Corp., Shell and Total) have the right to veto the bid. According to Oil and Gas Minister, Sauat Mynbayev, a Kazakhstan government commission will have to review the deal and could take up to two months to do so. The Chief Executive of KazMunaiGas has said previously that, if the stake came up for sale, the state-company would consider purchasing it.
According to analysts, the other members of the Kasahagan group would be unlikely to block the bid due to “ongoing problems at the project.”
Edited from various sources by David Bizley
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