News: ONGC to buy stake in Turkmenistan oil blocks

(RTR 05/01/2007) New Delhi - Oil and Natural Gas Corp. Ltd. is close to buying a stake of up to 33 per cent in two Caspian sea blocks offshore of Turkmenistan, a top company official said. ONGC's overseas investment arm, ONGC Videsh Ltd., will soon sign a deal to this effect with the operator, Denmark's Maersk Oil, and German oil and gas firm Wintershall, which is also a major stake holder.

"We are waiting for the Turkmenistan government's approval. Once that is obtained we will sign a production sharing contract," ONGC Videsh Managing Director R.S. Butola told reporters late on Thursday.

He said ONGC would pay Rs 150-200 crore ($33.97- $45.29 million) for a stake in two properties -- blocks 11 and 12.

The deal has been delayed due to death last month of Turkmenistan's president, Saparmurat Niyazov, he said.

Maersk Oil with an 80 per cent holding operates the blocks, which cover about 5,663 sq km, while Wintershall, a unit of the BASF chemicals group, owns the remaining 20 per cent stake.