OVL considering being part of Kazakhstan’s $500 “Eurasia project”

State-run Oil and Natural Gas Corporation Videsh Limited (OVL) is closely studying the proposal to be part of the massive “Eurasia Project” being initiated by the Kazakhstan government to offer an area North of the Caspian Sea for exploration of oil and gas, thehindu.com reports.

According to officials in the Petroleum Ministry, OVL is looking deeply into the communication sent by the Indian Embassy in Astana about the new initiative and has advocated that OVL should closely look at being part of this project which posses a whopping 300 oil and gas fields in the basin including the super giant fields like Karachaganak, Tengiz and Kashagan in the territory of Kazakhstan. A presentation on this issue was made during the KasEnergy Eurasian Forum last month.

According to the Indian Embassy communication quoting the Kazak Minister of Oil and Gas, Uzakbay Karablin, the recent studies have shown that Kazakhstan possesses potentially huge resources of hydrocarbons in the pre-Caspian basin, whose major portion is concentrated predominantly in more deep lying oil and gas horizons.

“Kazakhstan is initiating a new international project, for deep horizon exploration of the Caspian depression, both on land and at sea in the territory of Kazakhstan and the Russian Federation. For this purpose, government plans to create a consortium of oil companies to participate in the project and provide funding for it. The project has been named as ‘Eurasian Project’. Kazakhstan plans to attract technology and expertise from international major exploration and production companies by getting them involved in the proposed consortium,” the Indian Embassy communication states.

It said the expected project cost is estimated to be around $500 million and the entire project will be taken up during the 2015-20 period. The Indian Embassy is of the view that OVL should consider participating in the process to understand and evaluate the project and its terms in entirety for taking a considered view including future participation.