ET reported that Mr LN Mittal group is planning to exit oil and gas exploration projects it was developing jointly with ONGC in Trinidad and Tobago and Kazakhstan, following the global meltdown and crash in oil prices.

The report cited A person close to the development as saying that Mittal Investments is now planning to exit these blocks. Mittal Investments confirmed its exit from at least one of the blocks. It said that “We have carried out a thorough analysis of the Trinidad project in view of the impact the current economic situation is having on the oil and gas industry, and do not believe it is prudent to continue at this time.”

Mr RS Sharma CMD of ONGC is hopeful of rescuing the project. He told ET that “They have expressed their difficulties, but we are trying to work out some solutions.”

Mittal Investments and India’s state owned oil and gas major ONGC were to together develop two projects NCMA-2 block in Trinidad and Tobago and Satpayev block in Kazakhstan under their joint venture ONGC Mittal Energy. OMEL holds 65% interest in NCMA-2, an offshore exploration block located at the northern margin of Trinidad and Tobago. The balance 35% is held by Trinidad and Tobago’s national oil company Petrotrin. The block, awarded to OMEL in 2007 has estimated reserves of 2 trillion cubic feet of natural gas.

(Sourced from Economic Times)