While OVL on April 16 signed a Joint Operating Agreement and Participation Share Agreement/Assignment Agreement with Kazakhstan's KazMunaiGas Exploration Production to buy a quarter of the Satpayev block, it on Wednesday signed a pactwith the Kazakh government to formally become a part of the concession.
Till now, the Exploration and Production Agreement for the Satpayev block was only between KazMunaiGas and the Kazakhstan government.
This agreement was amended today to include OVL as a 25 per cent partner, official sources said.
The agreement was signed by OVL director (exploration) Joeman Thomas in Astana.
OVL paid $13 million as a signing amount to Kazakhstan.
In addition, it will pay $80 million as a one-time assignment fee to KazMunaiGas.
On top of this, OVL has committed a minimum exploration investment of $165 million and an additional optional expenditure of $235 million to the project.
The Kazakhstan government had in June last year awarded the 1,582-square kilometre Satpayev block to KMG, which remains the operator, with a 75 per cent participating interest.
The Satpayev block is located in the North Caspian Sea, in water depths of 6-8 metres, and has two prospective areas that hold an estimated 256
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