ONGC Videsh and steel baron L N Mittal are jointly planning to tap oil and gas assets in Kazakhstan.
The Indian and Kazakhstan governments are considering a co-operation in hydrocarbon sector, which may land up in favour of the combine.
The Kazakh petroleum department has written to its Indian counterpart to discuss the feasibility of an energy co-operation between the countries.
Mittal Steel is planning to source natural gas from the country for its own 5.5 million tonne per annum steel plant at Temirtau as feedstock. It is one of the largest single-site integrated steel plant in the world, covers about 5,000 hectares.
Mittal Steel has coal reserves amount to 1.5 billion tonne. Iron ore reserves top 1.7 billion tonne. The company operates a 435 mw thermal power station. It has maintained its cost leadership position by continuously upgrading its technology and equipment.
The OVL-Mittal is eyeing for 40-60 per cent share in the unexplored asset of Caspian offshore controlled by Kazakhstan.
"Even though talks are at the primary stage, both the governments are hopeful for a joint venture," sources close to the development said.
OVL is lining up a billion-dollar infrastructure development projects for Kazakhstan to secure oilfields.
The project includes road construction, power generation and water distribution. OVL had lined up similar 'oil for road and power' project for Nigeria also.
Last year, ONGC-Mittal Energy had received first blow in kazakhstan from China National Petroleum Corporation in PetroKazakh deal. In the wake of this, India government was keen to get oil blocks in Kazakhstan, said industry sources.
At present, OVL is under taking exploration in two Kazakhstan oil blocks. However, both these assets are not yet proved worthy.
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