Steel magnate Lakshmi Mittal has pulled out of a project involving development of an oilfield in Kazakhstan in partnership with Oil and Natural Gas Corporation (ONGC). It is now looking for buyers for its stake in another company in the Central Asian nation.
Mittal Investment Sarl (MI), the holding company of Mittal family, had used the Kazakh government to muscle its way into the Satpayev oilfield in the Caspian Sea where ONGC Videsh Ltd (OVL) was shortlisted for a stake.
However, just on the eve of signing an agreement for the field, MI decided to pullout, sources in know of the development said.
OVL, which had in 2007 relented to the Kazakh condition of getting Mittal in the highly prospective field, has written to Almaty, saying the 25 per cent stake in Satpayev would now be acquired by it and not by ONGC-Mittal Energy Ltd — the joint venture it had with Mittal.
Mittal had dumped OVL in April 2007 after it acquired 50 per cent stake in Caspian Investments Resources (CIR) from Russian oil firm LUKOIL for $980 million. Sources said it is now looking at selling its interest in the company.
CIR acquisition was originally to be done by OMEL but the India-born billionaire went ahead on his own, citing opposition to OMEL from LUKOIL.
Mittal now wants to exit from all oil and gas projects in Kazakhstan.
