BUENOS AIRES (NNN-MERCOPRESS): The overseas arm of Indian state-owned Oil and Natural Gas Corp (ONGC), ONGC Videsh Ltd is in talks to buy 25% stake in an exploration block off Falkland Islands in the South Atlantic, reports The Economic Times from New Delhi.
OVL is a subsidiary of India’s flagship oil company and has operations in Brazil, Colombia, Cuba and Venezuela OVL is a subsidiary of India’s flagship oil company and has operations in Brazil, Colombia, Cuba and Venezuela
OVL is in talks to buy 25% stake of UK-listed Falkland Oil and Gas Ltd in two exploration blocks, lying 350 miles off the Southern tip of Argentina, sources privy to the development said.
FOGL, an oil and gas exploration company focused on its extensive licence areas to the South and East of the Falkland Islands will retain operator-ship of the licence.
The blocks are located in the south and east Falkland basins in water depths ranging from 500 meter to 2,000 meter. The resources estimate of 15 prospects identified may hold up to 15 billion barrels of oil equivalent or 46 Trillion cubic feet of gas reserves.
Under the terms being discussed with FOGL, OVL would contribute its pro-rata share of 2012 drilling program, comprising two exploration wells. OVL would also pay its pro-rata share of certain historical costs incurred during 2011 related to preparation for drilling this year. The costs incurred are estimated to be 68 million dollars.
Besides, OVL would make cash payment of 40 million dollars. If the Loligo prospect, where drilling is due this year, turns out to be a gas discovery, a liquefied natural gas (LNG) terminal would be built onshore with a capacity of about 7 million tons per annum for exports to consumption centres like India. But if the reserves are of lesser than quantity, a floating LNG project may be developed, they said.
FOGL plans to drill one exploration well (Loligo) in Phase-1 in the Northern License Area. In Southern Licence Area it has committed to drill one well by December 30, 2015. Under licence terms, a Discovery Area can be held for five years to allow time for appraisal drilling and submission of a development plan, sources said adding exploitation (production) period has been capped at 35 years.
According to its website, ONGC Videsh website was rechristened on 15th June 1989 from the erstwhile Hydrocarbons India Private Limited, which was incorporated on 5th March, 1965. Over a period of time, OVL has grown to become the second-largest E&P company in India both in terms of oil production and oil and gas reserve holdings. The primary business of OVL is to prospect for oil and gas acreages abroad including acquisition of oil and gas fields, exploration, development, production, transportation and export of oil and gas.
OVL is a wholly-owned subsidiary of Oil and Natural Gas Corporation Ltd, ONGC), the flagship national oil company of India. It has operations in several Latin American countries: Brazil, Colombia, Cuba and Venezuela.
Starting with the exploration and development of the Rostam and Raksh oil fields in Iran and undertaking a service contract in Iraq, a major breakthrough was achieved by OVL in 1992 in Vietnam with the discovery of two major free gas fields, namely LanTay and LanDo, in partnership with British Petroleum and Petro-Vietnam.
The success carried on thereafter. In 2001, OVL acquired 20% stake in Sakhalin-1 project in the far east of Russia. In January 2009, OVL completed the acquisition of Imperial Energy Corporation Plc., an UK listed company, having its exploration and production assets in Tomsk region of Western Siberia, Russia with an investment of over 2.1 billion dollars.
OVL along with other consortium partners was selected in February, 2010 by Venezuela for awarding a 40% ownership (equity) interest in a “Mixed Company” which will develop the Carabobo 1 Norte and Carabobo 1 Centro blocks located in the Orinoco Heavy Oil Belt of Venezuela. This is a multi-billion integrated oil project in Venezuela.
Recently, OVL added one asset in its portfolio of exploratory assets by signing agreements with KazMunaiGas (KMG), the national oil company of Kazakhstan for acquisition of 25% participating interest in Satpayev exploration block on 16th April, 2011.
The company, adopting a balanced portfolio approach, maintains a combination of producing, discovered and exploration assets, working as operator in 11 projects and joint operator in 6 projects. OVL produces hydrocarbons from its 9 assets, namely, Russia (Sakhalin-I and Imperial), Syria (Al-Furat Project), Vietnam (Block 06.1), Colombia (Mansarover Energy Project), Sudan (Greater Nile Oil Project and Block 5A), Venezuela (San Cristobal Project) and Brazil (BC-10) ; Blocks A1 and A3 in Mayanmar, Carabobo-1 in Venezuela and Farsi Block, Iran have discover and further work is being carried out.
OVL international oil and gas operations produced 9.45 MMT of O OEG in 2010-11 as against 0.252 MMT of O OEG in 2002-03. OVL overseas cumulative investment has crossed 12 billion dollars.
Some of the leading alliance partners of OVL are BP, CNPC, Ecopetrol, ENI, Exxon, Statoil Hydro, PDVSA, Petrobras, Petronas, Petrovietnam, Repsol, Rosneft, Shell, Sinopec, Total and TPOC. -NNN-MERCOPRESS
0 comments:
Post a Comment