Moscow/New Delhi: In his first major oil deal, billionaire Lakshmi N Mittal has acquired Russian oil firm Lukoil's 50 per cent stake in a Kazakhstan oil firm for $980 million (nearly Rs 4,000 crore).
Mittal Investments will also take over half of Caspian Investments Resources Ltd's (CIR) outstanding debt, which is equivalent to about $175 million, Moscow-based Lukoil said in a statement.
CIR has equity in five Kazakh oil fields – Alibekmola, Kozhasai, Northern Buzachi, Karakuduk and Arman – in the Aktyubinsk and Mangistau regions. Current production from the fields, which have total proven reserves of some 270 million barrels, is more than 40,000 barrels per day and is set to increase in the coming years.
Kazakhstan is one of the 10 countries Mittal had originally identified for exclusive pursuit of hydrocarbon opportunities in joint venture with Oil and Natural Gas Corp (ONGC).
Some in ONGC see the acquisition as violation of the pact unless Mittal transfers the stake to the joint venture firm, ONGC-Mittal Energy Ltd.
"Mittal had promised us that the stake will be transferred to OMEL once the transaction is complete. Lets see if he keeps the promise now that has happened," an ONGC executive said in New Delhi.
Mittal and ONGC had in July 2005 agreed to participate on an exclusive basis through OMEL in Angola, Azerbaijan, Congo Brazzaville, Democratic Republic of Congo, Indonesia, Kazakhstan, Romania, Trinidad and Tobago, Turkmenistan and Uzbekistan.
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