ONGC Videsh Limited has finalized definitive agreements for the acquisition of the 8.40% Participating Interest (PI) of ConocoPhillips in the North Caspian Sea Production Sharing Agreement (NCS PSA) that includes the Kashagan Field, in Kazakhstan. The acquisition, subject to relevant government, regulatory approvals, priority rights and consortium pre-emption rights, is expected to close in the first half of 2013.
The Kashagan Field, located in the shallow waters (~5m to 8m) of the Kazakh North Caspian Sea, is the world’s largest current development project. Kashagan’s consortium partners are Eni, Total, Shell, ExxonMobil and KazMunaiGaz each with 16.81% PI, while ConocoPhillips has 8.40% PI and Inpex has 7.56%.
Goldman Sachs is acting as exclusive financial advisor, Allen & Overy as legal advisor, E&Y as tax and accounting advisor and bayphase as technical advisor to ONGC Videsh.