ONGC JV buys 30% in Turkmenistan block

ONGC JV buys 30% in Turkmenistan block
Reuters Posted online: Monday , October 22, 2007 at 1311 hrs IST

Mumbai, October 22: Indian explorer Oil and Natural Gas (ONGC) said on Monday its joint venture ONGC-Mittal Energy Ltd had acquired a 30 percent participating interest in an exploration block in Turkmenistan for an undisclosed sum.

The exploratory block 11-12 in the Caspian Sea covers 5,663 sq km. "Discoveries have been made in adjoining areas such as Ashrafi and Karabakh," ONGC said in a statement.

Denmark's Maersk Oil, which was initially awarded the block in 2002, now has 36 percent participating interest, followed by Wintershall, the oil and gas arm of German chemicals group BASF, with 34 percent, ONGC said.

An exploratory well drilled by Maersk and Wintershall had showed indications of hydrocarbons, and another well is planned to be drilled by the new consortium in 2008, it said.

The ONGC joint venture was formed by the Indian explorer and Mittal Investment, which is part of the group that includes Arcelor Mittal.

The joint venture owns four oil and gas properties, including a producing one in Syria and two deepwater exploration blocks in Nigeria.

By 0734 GMT, shares in ONGC were up 2 percent at 1,129.90 rupees in a weak Mumbai market that was down 0.2 percent.