Tranocean to Buy Aker Drilling for $1.4B

- Tranocean to Buy Aker Drilling for $1.4B

Monday, August 15, 2011
Transocean Ltd.

Transocean announced an all cash voluntary offer for 100 percent of the shares of Aker Drilling for NOK 26.50 per share. The Board of Directors of Aker Drilling has unanimously recommended that its shareholders accept the Offer.

On August 14, 2011, Transocean entered into an irrevocable agreement with Aker Capital AS to acquire 41 percent of the outstanding shares of Aker Drilling through (a) the purchase of 14,959,740 shares by an affiliate of Transocean, representing 4.99 percent of the outstanding shares, and (b) a pre-commitment agreement for the remaining 107,873,858 shares, representing 36.1 percent of the outstanding shares, to be purchased by Transocean pursuant to the Offer. In addition, Transocean has received irrevocable pre-commitments of 19.5 percent of the outstanding shares of Aker Drilling from other shareholders, including funds managed by TPG-Axon Capital, bringing the total irrevocable commitments to 60.5 percent of the Aker Drilling outstanding shares.

The Offer price indicates an equity market capitalization of approximately NOK 7.93 billion, or $1.43 billion, assuming an exchange rate of NOK 5.53 to USD 1.00, which represents a 62 percent premium to Aker Drilling's 30-day average price of NOK 16.39 per share. Additionally, Aker Drilling has net debt of $0.80 billion.

Aker Drilling operates two harsh environment, ultra-deepwater, sixth-generation semi-submersible rigs currently on long-term contract to Statoil and Det Norske in Norway. In 2013, Aker Drilling is expected to take delivery of two sixth-generation drillships currently under construction at the DSME shipyard in Korea. The payment obligation when the drillships are delivered is $0.90 billion.

Aker Drilling will contribute approximately $1.05 billion in firm contract backlog. The transaction is also expected to be immediately accretive to Transocean's earnings.

Steven Newman, President and Chief Executive Officer of Transocean Ltd., said, "Aker Drilling is an excellent strategic fit for Transocean. It allows us to enhance our position in Norway where we have enjoyed a long-term presence and excellent customer relationships. Aker Drilling's high-quality people and state-of-the-art offshore drilling fleet will ensure that we continue to deliver outstanding service to our customers. This transaction also demonstrates our commitment to enhancing shareholder value by continuing to invest in high-specification assets to drive long-term growth."

Timing and Conditions

The complete details of the Offer, including all terms and conditions, will be contained in an offer document to be sent to Aker Drilling shareholders subject to the review and approval by the Oslo Stock Exchange pursuant to Chapter 6 of the Norwegian Securities Trading Act.

If approved, the Offer document is expected to be sent to Aker Drilling shareholders the week of August 21, 2011. The initial duration of the Offer period will be 20 U.S. business days. In the event the conditions of the Offer are not satisfied or waived by Transocean, the Offer will expire.

The Offer will not be made in any jurisdiction in which it would not be in compliance with the laws of such jurisdiction. This notification does not in itself constitute an offer. The Offer will only be made on the basis of the Offer document and can only be accepted pursuant to the terms of that document.

The Offer will be conditional upon Transocean receiving acceptances for a minimum of two-thirds of the voting shares of Aker Drilling, and the Aker Drilling Board recommendation not being withdrawn or amended. Both of these conditions are waivable by Transocean. The Offer is not subject to any financing conditions.

Morgan Stanley and Fearnley Fonds / Fearnley Offshore are acting as financial advisors to Transocean Services and Wikborg Rein is acting as legal advisor to Transocean Services.

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Songa to Buy Remaining Stake in Semisub

- Songa to Buy Remaining Stake in Semisub

Monday, July 25, 2011
Songa Offshore SE

Songa has entered into an agreement with the minority shareholders in Songa Eclipse to acquire the remaining 48.1% stake, following which Songa will have obtained 100% ownership. The transaction is expected to be completed at delivery of the Rig, subject to inter alia Songa securing the necessary take-out financing. The sellers of the shares are sub-funds of Sector Umbrella Trust managed by Sector Omega ASA (35.1%) and Pareto World Wide Offshore AS (13.1%) (the "Sellers").

Under the terms of the agreement, Songa will acquire the shares for USD 65 million as well as a conditional bonus payment to be made within 18 months from delivery of the Rig.

The conditional bonus payment will be calculated on the basis of the Rig's fair market value at the time of notice by the Seller less the purchase price already paid by Songa.

This new agreement enables Songa to optimize the financing of Songa Eclipse as a 100% owner, and replaces the current agreement between Songa and the Sellers, as described in the press release sent out by Songa on 24 March 2010. Songa is in the process of financing the rig with its existing banking group, and expects to get this in place prior to delivery of the Rig.

Through this transaction, Songa has obtained full ownership of its first modern ultra-deepwater semi-submersible Rig and should be seen as part of the Company's overall strategy to renew its fleet. Songa has been able to secure this position within 16 months from the initial investment, with a gradually increasing ownership. The weighted average total rig cost for Songa before the remaining bonus payment is estimated to be USD 660 million.

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JA Solar Announced It Entered Into A Definitive Agreement To Acquire Silver Age Holdings Limited

- JA Solar Announced It Entered Into A Definitive Agreement To Acquire Silver Age Holdings Limited



Jul 1, 2011

JA Solar (NASDAQ:JASO) announced that it has entered into a definitive agreement to acquire 100% ownership interest in Silver Age Holdings Limited. At the time of closing JA Solar will issue 30.901 million ordinary shares as consideration at a price of $5.825 per share.

Dr. Fang Peng, CEO of JA Solar, commented, "This agreement represents another important step in JA Solar's strategy of optimizing our cost structure through selective vertical integration. In today's solar market, it is essential for producers to improve costs while maintaining a relentless focus on technology and product quality. By boosting JA Solar's internal wafer capacity through this acquisition, we expect to achieve greater economies of scale and improve the company's profitability. Furthermore, Solar Silicon Valley has key technologies which can be leveraged to provide superior quality wafer substrates for our high-efficiency solar cell products. As a low cost leader in the solar industry, we expect that this transaction will enhance JA Solar's leadership position and enable us to meet strong global demand for our high-quality, high-efficiency solar products."

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UBS Initiates Coverage of Valero Energy with Buy Rating, $33 Price Target

- UBS Initiates Coverage of Valero Energy with Buy Rating, $33 Price Target



Jun 28, 2011

UBS initiated coverage of Valero Energy Corp (NYSE:VLO) today with a buy rating and a $33 price target for the company.

Shares of Valero Energy are trading up 2.32% at $24.25.

Valero Energy (NYSE:VLO) has a potential upside of 41.3% based on a current price of $24.25 and an average consensus analyst price target of $34.27.

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Energy Transfer to Buy Southern Union for $4.2B

- Energy Transfer to Buy Southern Union for $4.2B

Thursday, June 16, 2011
Dow Jones Newswires
HOUSTON
by Ben Lefebvre

Energy Transfer Equity (ETE) agreed to buy Southern Union (SUG) for $4.2 billion in a deal that will create the largest natural gas pipeline company in the U.S.

The two companies hope that combining Energy Transfer's position in prolific natural gas production areas with Southern's access to markets will make them better able to transport natural gas through what is becoming an increasingly congested system. The glut has been brought about by new drilling technology, which in the past decade has unlocked an unprecedented natural gas bounty from shale formations across the U.S.

"Energy Transfer has great interstate pipelines and access to key shale plays, but not as much market access as Southern brings to the Midwest and Florida," said Avi Feinberg, an equities analyst with Morningstar Inc.

The combined company will have capacity to move more than 30 billion cubic feet a day of natural gas along nearly 45,000 miles of pipeline. That's nearly half of the natural gas produced in the U.S.

As part of the deal, Energy Transfer Equity will assume $3.7 billion of Southern Union's debt. The new, larger company will have the heft to invest in adding new pipeline capacity, executives said.

The "mind-boggling" levels of natural gas liquids production coming out of the Permian Basin and Eagle Ford Shale areas of Texas has already tied up pipeline systems in the region, Energy Transfer Chief Executive Kelcy Warren said during a conference call with investors.

"I personally see a train wreck if someone doesn't build takeaway capacity in that region very soon," Warren said. "We're committed to doing that."

Energy Transfer plans an additional $1.7 billion in expansion projects, Warren said. After completion of the merger with Southern--expected in the first quarter of 2012--the new company will have access to more shale production areas than any other U.S. pipeline company, Warren said.

Natural gas is trading far below its prices in mid-2008 when the financial crisis crippled industrial demand even as unconventional gas flowed in great quantities from new shale production. Though the price of the commodity is expected to remain low for the foreseeable future, demand is expected to rise significantly. Oil giants, including ExxonMobil and Chevron, have made huge bets on the sector over the past year through acquisitions.

Energy Transfer said it has identified about $100 million in commercial and operational synergies as well as an additional $25 million in one-time savings.

Under the deal, Energy Transfer will issue new Series B units with an implied value of $33 a Southern Union share, a 17% premium to the former's Wednesday closing price.

Southern Union shares surged 17% to $33.11 in early trading. They last traded above the offer price in the middle of 2007, though they have risen 17% so far this year.

Energy Transfer shares rose 6%, to $45.09. The company reported in February its fourth-quarter earnings fell 13% on a surprise drop in revenue because of weakness in its natural-gas operations.

Southern Union reported last month its first-quarter earnings rose 7.4%, beating analysts' estimates, as increased revenue from distribution and the transportation and storage segments helped offset lower margins.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Laredo to Buy Broad Oak for $1B

- Laredo to Buy Broad Oak for $1B

Thursday, June 16, 2011
Laredo Petroleum Inc.

Laredo and Broad Oak have entered into definitive agreements whereby Broad Oak will become a wholly-owned subsidiary of Laredo in exchange for aggregate consideration of approximately $1 billion.

This aggregate consideration will consist primarily of newly issued units of Laredo. As part of the transaction, Laredo will also pay off the existing Broad Oak bank indebtedness with funds from a revised $1B credit facility. This facility will have an initial borrowing base of $650 million fully underwritten by Wells Fargo and BofA Merrill Lynch as Joint Lead Arrangers. Both Laredo and Broad Oak are privately held companies formed in partnership with their management teams by affiliates of Warburg Pincus LLC.

"Broad Oak is a great company with an impressive track record of success. David Braddock, John Coss, Robert Skinner, Jim Sherrill and their team have don an excellent job building the company and we are excited about the opportunity to combine our technical knowledge and exploitation efforts in the Wolfberry play," said Randy Foutch, Founder and Chief Executive Officer of Laredo Petroleum. "This transaction is a significant event for Laredo, as it meaningfully increases our scale while also deleveraging our balance sheet and adding incremental liquidity."

David Braddock, Founder and Chief Executive Officer of Broad Oak Energy, commented, "This transaction represents a successful outcome for the senior management, employees and shareholders of the company. I am confident that under the ongoing leadership of Randy Foutch and his team, the assets we developed at Broad Oak will continue to create significant value for both Laredo and Broad Oak stakeholders."

"We've built this great team at Broad Oak and were an early mover in identifying the unconventional potential of the extended Wolfberry play," added John Coss, President of Broad Oak Energy. "I'm looking forward to watching the play continue to evolve as Broad Oak joins forces with Laredo."

The transaction is expected to close at the beginning of July and is subject to customary closing conditions.

Tudor, Pickering, Holt & Co. Securities, Inc. served as financial advisor to Laredo Petroleum and rendered a fairness opinion to the Board of Directors of Laredo. J.P. Morgan Securities LLC served as financial advisor to Broad Oak and rendered a fainress option to the Board of Directors of Broad Oak.

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ONGC, GAIL Keen to Buy ExxonMobil Stake in Kazakh Oil Field

- ONGC, GAIL Keen to Buy ExxonMobil Stake in Kazakh Oil Field

Wednesday, June 08, 2011
Dow Jones Newswires
by Rakesh Sharma

Oil & Natural Gas Corp. (ONGC) and GAIL are working on a plan to buy at least a part of ExxonMobil's stake in Kazakhstan's Kashagan oil field, in yet another push by the South Asian country to secure energy assets for its expanding economy.

"We are interested. We are working on it," GAIL Chairman B.C. Tripathi told Dow Jones Newswires. He didn't say how much of Exxon's stake in Kashagan were the two state-run companies looking to acquire.

"The discussions have been going on but no decision has been made yet," said a senior ONGC executive, who didn't wish to be named.

ONGC is India's flagship oil explorer while GAIL is the country's largest gas distributor by market share.

Earlier Wednesday, the Hindustan Times newspaper reported that ONGC Videsh Ltd., ONGC's overseas investment arm, and GAIL are jointly planning to buy an 8.4% stake in the Kashagan oil field from Exxon Mobil for about $5 billion.

The consortium has submitted a non-binding bid to Exxon to buy about half of its 16.8% stake in the oil field, the report said, citing documents related to the deal.

Exxon Mobil spokesman Alan Jeffers told Dow Jones Newswires the company doesn't comment "on rumors, speculation or media reports."

"Kazakhstan is an important element of the Exxon Mobil global portfolio and we have a long-term commitment to the country," Jeffers said.

India, which meets nearly four-fifths of its crude oil requirement through imports, has been eying energy assets in Kazakhstan. The Central Asian nation is expected to become one of the world's top 10 oil producers by 2025 and one of the top three contributors to production growth outside the Organization of Petroleum Exporting Countries.

In April, Indian Prime Minister Manmohan Singh and Kazakhstan President Nursultan Nazarbayev underlined the importance of energy cooperation between the two countries.

India has lagged its rival China in the race for energy assets in Kazakhstan, which is home to some of China's largest investments.

China National Petroleum Corp. and Kazakhstan's national oil and gas company, KazMunaiGas, signed a new energy cooperation agreement in February. CNPC has said that its oil and gas production in Kazakhstan reached a record 30 million metric tons of oil equivalent in 2010 and that it plans to double the transmission capacity of the crude oil pipeline linking the two countries to 20 million metric tons a year, or 401,600 barrels a day, by 2013.

"The decision making in Indian state-run companies on acquisitions is very slow as they have to seek too many approvals and there are layers of sanctions required," said Jagannadham Thunuguntla, equity head of brokerage SMC Capitals Ltd. "The multi-billion-dollar deals also need parliament approval, which further slows the speed. India needs to move fast to seal such deals."

Kazakhstan expects its Kashagan oil field, which lies in the northern part of the Caspian Sea, to begin production by the end of 2012. Production is expected to reach 1.0 million tons in the second phase of development and 1.5 million tons in the third phase.

KazMunaiGas, Royal Dutch Shell PLC, ExxonMobil, Total SA and ENI SpA each own 16.81% in Kashagan while ConocoPhillips and Japan's Inpex Corp. hold 8.4% and 7.56%, respectively.

Copyright (c) 2011 Dow Jones & Company, Inc.

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Tullow to Buy EO Group's Interests Offshore Ghana

- Tullow to Buy EO Group's Interests Offshore Ghana

Thursday, May 26, 2011
Tullow Oil plc

Tullow has entered into a conditional agreement to acquire the interests of EO Group Limited (EO), consisting of its entire interests offshore Ghana, for a combined share and cash consideration of $305 million.

This acquisition will increase Tullow's interest in the West Cape Three Points license offshore Ghana by 3.5% to 26.4% and increase the Group's interest in the world-class Jubilee Oil field, which Tullow Operates, by 1.75% to 36.5%.

Tullow will issue 10,137,196 ordinary shares of 10p each in the share capital of the Company to EO to satisfy approximately $216 million of the consideration. The balance, which will include certain working capital adjustments, will be paid in cash. The number of shares has been determined using an average of the closing share prices and exchange rates for the five business days up to and including May 24, 2011. The receipt of Tullow shares as part of the consideration gives EO the opportunity to retain an indirect interest in the upside potential of all of Tullow's Ghanaian assets.

The effective date of the transaction is December 1, 2010. The agreement is conditional on the receipt of various consents, approvals and assurances, including from the Government of Ghana.

Upon completion of the agreement, application will be made to the UK Listing Authority and the Irish Stock Exchange for the Shares to be admitted to the official list of the UK Listing Authority and the official list of the Irish Stock Exchange and application will be made to the London Stock Exchange and the Irish Stock Exchange for the Shares to be admitted to trading on their respective main markets.

Aidan Heavey, Tullow's Chief Executive, commented, "This acquisition represents an excellent opportunity to extend our interest in these high-quality assets in Ghana. Following our exploration and production successes over the last few years, which culminated in First Oil in late 2010, this purchase further demonstrates Tullow's long-term commitment to Ghana and our belief in its significant remaining potential."

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Tullow Strengthens Portfolio with North Sea Buy

- Tullow Strengthens Portfolio with North Sea Buy

Tuesday, May 24, 2011
Tullow Oil plc

Tullow has entered into an agreement to acquire Nuon Exploration and Production (Nuon E&P) for a cash consideration of €300 million ($421.5 million) from the Vattenfall Group.

The acquisition of Nuon E&P will significantly enhance Tullow's North Sea business adding a portfolio of 25 licenses that include over 30 producing fields, numerous development and exploration opportunities and ownership of key infrastructure. This portfolio will increase the Group's North Sea gas production by 9,000 boepd to approximately 23,000 boepd and add reserves and resources of 28 mmboe.

The Nuon E&P assets are very complementary to the Group's existing Dutch assets and will provide a stronger platform for growth in an area that the Group considers has significant potential. The portfolio includes a number of near term development and exploration opportunities with the potential to sustain and grow production in the short term. The ownership and access to key infrastructure is an excellent strategic fit with Tullow's existing exploration acreage in the area.

The Nuon E&P transaction has an effective date of January 1, 2011 and is expected to complete by July 2011.

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TransAtlantic to Buy Thrace Basin Assets

TransAtlantic to Buy Thrace Basin Assets

Thursday, April 28, 2011
TransAtlantic Petroleum Ltd.

TransAtlantic and Mustafa Mehmet Corporation ("MMC") have entered into a definitive share purchase agreement. The Purchase Agreement follows the Option Agreement the Company entered into on November 8, 2011 and the subsequent exercise of the option on February 10, 2011. Under the Purchase Agreement, MMC agreed to sell, and TransAtlantic Worldwide agreed to purchase, all of the shares of Thrace Basin Natural Gas Turkiye Corporation ("TBNG").

Under the terms of the Purchase Agreement, TransAtlantic Worldwide or its assigns will acquire all of the shares of TBNG in exchange for the Company issuing 18.5 million of its common shares and for the transfer of certain overriding royalty interests (ranging from 1.0% to 2.5% of the working interests owned by TBNG on specified exploration licenses) to MMC or an affiliate.

TBNG and its sister company, Pinnacle Turkey, Inc. ("PTI"), currently produce an aggregate of approximately 25.0 million cubic feet of natural gas per day in the Thrace Basin region of northwestern Turkey and hold interests in approximately 600,000 net onshore acres and 360,000 net offshore acres in the Thrace Basin and approximately 305,000 net onshore acres in the Gaziantep region of southeastern Turkey. As previously announced, the Company expects that third party investors, including Valeura Energy Inc., will provide between $90.0 and $100.0 million in cash to acquire between approximately 59.5% and 65% of the current production and acreage owned by TBNG and PTI.

Closing of the transactions contemplated by the Purchase Agreement is expected to occur late in the second quarter of 2011 and is subject to, among other conditions, the receipt of consents from all required regulatory authorities, including the Competition Board of the Republic of Turkey.

KKR to Buy Barnett Shale Properties from Carrizo

KKR to Buy Barnett Shale Properties from Carrizo

Wednesday, April 27, 2011
Kohlberg Kravis Roberts & Co. L.P.

Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, KKR) announced that KKR has entered into a definitive agreement to acquire certain Barnett Shale properties from Carrizo O&G for $104 million. The transaction, which is expected to close in mid-May, is being made through KKR Natural Resources (KNR), KKR's partnership with Premier Natural to pursue investments in North American oil and gas properties. The transaction is the third investment made by KNR and, following the acquisition of certain properties from ConocoPhillips in January, the second investment made by KNR in the Barnett Shale.

Located in North Central Texas and producing out of the Barnett Shale formation, the Assets contain 122.4bcfe of total net proved reserves (based on a third party estimate) and comprise 75 gross (58.5 net) wells currently producing at a gross rate of 15.7mmcfe/d (8.3 mmcfe/d net).

"With their significant proved developed producing reserve component in a reservoir we know well through our current operations in the region, the assets are a great fit for our KKR Natural Resources platform. We are pleased to add these assets to our oil and gas portfolio and remain excited about the opportunity to grow the KNR platform through the acquisition of additional oil and gas properties in North America," said Jonathan Smidt, a Member at KKR and a senior member of KKR's Energy and Infrastructure business.

KKR announced its partnership with Premier in February, 2010. Founded in June 2006 by former executives of Vintage Petroleum, Inc., Premier currently operates a portfolio of assets located in the Barnett Shale, the Texas Gulf Coast and the Permian Basin and has experience operating assets in most of the major producing basins in the United States.

Chesapeake Begins Tender Offer to Buy Bronco Drilling

Chesapeake Begins Tender Offer to Buy Bronco Drilling

Tuesday, April 26, 2011
Chesapeake Energy Corp.

Chesapeake announced that it, through a new wholly owned subsidiary, Nomac Acquisition, Inc., is commencing a cash tender offer to purchase all outstanding shares of common stock of Bronco Drilling. On April 15, 2011, the companies previously announced a definitive agreement whereby Chesapeake would acquire Bronco in a cash tender offer and subsequent merger for approximately $315 million, including debt, net working capital and outstanding warrants.

Upon the successful closing of the tender offer, Bronco stockholders will receive $11.00 in cash for each share of Bronco common stock tendered in the offer, without interest and less any required withholding taxes. If more than 50 percent of the shares of Bronco common stock on a fully diluted basis (but less than all of the outstanding shares of Bronco common stock) are tendered, and all other closing conditions are satisfied, any remaining shares not tendered will be converted into the right to receive the same consideration in cash in connection with a merger of Nomac Acquisition into Bronco. Following the transaction, Bronco will be an indirect wholly owned subsidiary of Chesapeake.

Today Chesapeake will file with the Securities and Exchange Commission (SEC) a tender offer statement on Schedule TO that provides the terms of the tender offer, and Bronco will file a solicitation/recommendation statement on Schedule 14D-9 that includes the recommendation of Bronco's board of directors that Bronco stockholders accept the tender offer and tender their shares in the offer. As previously disclosed, the board of directors of each of Bronco and Chesapeake has unanimously approved the transaction.

The tender offer will expire at Midnight, New York City time, on May 23, 2011 unless extended in accordance with the merger agreement and the applicable rules and regulations of the SEC. The closing of the tender offer is conditioned upon the valid tender of a majority of the outstanding shares of Bronco common stock on a fully diluted basis. As previously disclosed, stockholders holding shares representing approximately 32% of Bronco’s outstanding common stock have agreed, among other things, to tender all of their shares in the tender offer. In addition, Bronco’s directors and executive officers, who beneficially own in the aggregate approximately 1.7% of the outstanding shares of Bronco common stock (excluding unvested restricted shares), have indicated that they intend to tender their shares in the tender offer.

The closing of the transaction is conditioned upon expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.

Gazprom, ENI to Conclude Elephant Stake Buy after Libyan Unrest

Gazprom, ENI to Conclude Elephant Stake Buy after Libyan Unrest

Wednesday, April 20, 2011

Dow Jones Newswires

by Jacob Gronholt-Pedersen

Gazprom plans to acquire a 33% stake in ENI's Elephant field in Libya has been delayed, and will be finalized when the situation stabilizes in the North African country, Gazprom said Wednesday in a press release.

The announcement came following a meeting in Moscow between Gazprom Chief Executive Alexei Miller and ENI CEO Paolo Scaroni.

The two also discussed France's Electricite de France and Germany's Wintershall joining the South Stream project.

ONGC to Buy 25% Stake in Kazakh Exploration Block

ONGC to Buy 25% Stake in Kazakh Exploration Block

Wednesday, April 13, 2011
Dow Jones Newswires
by Rakesh Sharma

Oil & Natural Gas Corp. will sign an agreement Saturday to purchase a 25% stake in the Satpayev exploration block in Kazakhstan, the chairman of India's biggest explorer said Wednesday.

"The government [of India] has approved a total investment plan of $400 million. This includes a signature bonus of $13 million and $80 million as a fee for taking the stake in the block," A. K. Hazarika told Dow Jones Newswires.

"The rest will be spent on exploration activities."

The deal will mark another success by ONGC in its attempts to buy oil and gas assets overseas to secure energy supplies for the world's fastest-growing major economy after China. The state-run company, which has been witnessing a decline in production at its aging fields in India, has in the past missed out on several overseas oil and gas asset acquisitions, especially to cash-rich Chinese companies in western Africa.

Kazakhstan's Satpayev exploration block is located in a hydrocarbon-rich region of the North Caspian Sea, off the country's south-western coast.

KazMunaiGas, Kazakhstan's national oil company, will hold the remaining 75% stake in the block.

The initial agreement for the stake sale was signed in 2009, but the governments haven't so far disclosed the valuation for the stake transfer.

ONGC had originally sought the 25% stake in association with Lakshmi Niwas Mittal's Mittal Investments Sarl, but the billionaire, who owns a steel mill in the central Asian nation, pulled out of the venture in November 2009, leaving ONGC to pursue the deal on its own.

ONGC will likely purchase the stake in the Satpayev block via its overseas investment unit, ONGC Videsh Ltd.

Hazarika said the agreement will be signed during Indian Prime Minister Manmohan Singh's visit to Kazakhstan for bilateral meetings. Singh will visit Kazakhstan Friday and Saturday.

The Indian government is pushing state-run explorers to expedite acquisitions of overseas exploration and producing assets as a possible hedge against fluctuations in global crude oil prices and save on precious foreign exchange. The South Asian country imports four-fifths of its crude oil requirements.

Earlier Wednesday, the Hindustan Times reported that a peak output of 287,000 barrels per day is envisaged from the 256 million tons of reserves in the Satpayev field.

Hazarika declined give details on the reserves. "That has to be seen," he said.