ONGC Videsh Ltd (OVL) has announced to buy 8.4 per cent stake worth 27,800 crore ($5 billion) of ConocoPhillips in Kashagan oilfield in Kazakhstan.
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.
The announcement was made on Monday. It is biggest-ever deal by ONGC. The field will start production in the first half of 2013.
Total, Shell, ExxonMobil and KazMunaiGaz already each have 16.81 percent stake and Inpex holds 7.56 per cent stake in this oil field.
With this deal in place ONGC will get 1 million tonnes a year for 25 years in First phase while in the next two phases the share would be significantly higher.
After the announcement the shares of ONGC rose to 1.44%. Oil and Natural Gas Corporation was quoting at Rs 253.55 in the morning.
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