Prime Minister Narendra Modi and Kazakhstan premier Karim
Massimov on Tuesday launched the first exploratory drilling of the Satpayev oil
block by India's OVL and KazMunaiGaz. The two leaders launched the drilling
through live video conferencing. ONGC Videsh Ltd. (OVL) -- the overseas arm of
state-run ONGC -- had in 2011 picked up 25 percent stake in the Satpayev oil
block in the North Caspian Sea. ONGC Videsh has committed to investing $400
million in exploration in the block. It will also pay $80 million to
Kazakhstan's KazMunaiGas as a one-time assignment fee. In 2011, OVL had
acquired 25 per cent stake in this block and has committed to invest around 400
million dollar to develop it. OVL is also seeking to capture the potential of
this oil block by drilling out peak output of 2 lakh 87 thousand barrels per
day. 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 to conduct a feasibility study on importing crude oil and gas from Kazakhstan
either through a pipeline or as liquid natural gas in ships. The hydrocarbons
can be brought first to Iran via the Caspian Sea and transported across the
country through a pipeline.
The opening of the
Iran-Turkmenistan-Kazakhstan railway link will also play important role in
transportation of these hydrocarbon resources to India. However, India is yet
to conduct feasibility study on importing crude oil and gas from Kazakhstan
either through a pipeline or ships. Comment Thus it can be said that India’s
International North South Transport Corridor (INSTC) along with development of
Chabahar Port (Iran) will play strategic role to access these resources for its
energy security, similar to China move to develop Gwadar port (Pakistan)
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