Date:20/02/2005 URL: http://www.thehindubusinessline.com/2005/02/20/stories/2005022001330200.htm

Back OVL signs pact with Kazakh gas firm

Our Bureau

New Delhi , Feb. 19

ONGC Videsh Ltd (OVL) has signed a memorandum of understanding with Kazakhstan state-owned firm KazMunayGas, to concretise the development of specific exploration and production projects in Kazakhstan.

``The MoU will enable the two firms to identify projects and negotiate commercial/technical terms, which is expected to be completed in a year'', the Union Petroleum Secretary, Mr S.C. Tripathi, told presspersons here on Saturday.

The two state-run companies have also agreed to set up a joint working group on hydrocarbon under the aegis of the Joint Commission to examine and develop the sector.

While noting the recent developments on Iran-India and Myanmar-India pipelines projects, the Kazak side also expressed interest in the emerging possibilities of evacuating oil and gas from Kazakhstan to the Arabian Sea and agreed to jointly examine the possibilities of connecting oil and gas from Kazakhstan to a possible Asian pipeline grid.

Both sides were also in favour of setting up joint ventures for gas process in Kazakhstan as well as petro-chemcial projects.

Mr Tripathi said that the proposed North-South transport corridor from Aktau on Caspian Sea through Iran and to the Arabian Sea has excited Kazakhstan, which has assured support in increasing trade volumes.

Kazakhstan has also informed India about possible export-import and transit routes between two countries with the possible use of Altynsarin-Khromtau railroad area. Other possible routes for the transit cargo between the two countries could be via Aktau-Iranian ports and railroad station Sarys-Agash-Sarakhs in Iran.