India & Kazakhstan launch first drilling at Satpayev oil block of OVL [ Current Affairs ]

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Indian Prime Minister Narendra Modi and Kazakhstan premier Karim Massimov launched the first exploratory drilling at Satpayev oil block owned by India’s ONGC Videsh Limited (OVL) and Kazakhstan Company KazMunaiGaz in Astana, Kazakh capital.

  • Satpayev oil block is an offshore field located in the Northern Caspian Sea and drilling out peak output of 2 lakh 87 thousand barrels per day. It has potential reserves estimated at 1.8 billion barrels crude oil and natural gas.
  • With this launch, India has made a significant step to achieve energy security especially in hydrocarbon needs in line with Make in India programme. India is yet to conduct feasibility study on importing crude oil and gas from Kazakhstan either through a pipeline or ships.
  • OVL had acquired 25 per cent stake in this block and has committed to invest around 400 million dollar to develop it in 2011.
  • The opening of the Iran-Turkmenistan-Kazakhstan railway link will also play important role in transportation of these hydrocarbon resources to India.
  • This move also can be seen as India’s strategy to counter the strategic foothold gain of China in the Central Asian region. The hydrocarbons from this region can be brought first to Iran via the Caspian Sea and transported to India through a pipeline or ships.
  • The opening of the Iran-Turkmenistan-Kazakhstan railway link will also play important role in transportation of these hydrocarbon resources to India.

- Published on: July 10, 2015