… As OVL buys 30% stake in offshore oil block
By Confidente Reporter
THE overseas arm of Indian government-owned Oil and Natural Gas Corp (ONGC), ONGC Videsh Ltd (OVL), has acquired a 30 percent interest in an oil block off the coast of Namibia, from United Kingdom’s Tullow Oil.
OVL did not disclose the value of the deal.
Tullow Oil previously held 65 percent interest in Namibian Petroleum Exploration Licence (PEL) 37, covering three blocks. Pancontinental Namibia (Pty) Ltd holds a 30 percent interest and the remaining 5 percent is with Paragon Oil and Gas.
OVL said this week that it has “signed definitive binding agreements with Tullow Namibia Ltd (Tullow), a wholly owned subsidiary of Tullow Oil plc, on 28 June, for acquiring a 30 percent participating interest in Namibia PEL 37, for blocks 2112A, 2012B and 2113B, out of Tullow’s existing participating interest of 65 percent in the licence”.
Tullow will continue to remain the operator after the acquisition, which is subject to the satisfaction of customary condition precedents, including approvals from Namibian regulatory authorities and joint venture partners, the OVL said in a statement.
“The completion of the present transaction would mark OVL’s entry into Namibian offshore (oil prospecting) and is consistent with its strategic objective of adding high-impact exploration and production assets, to its existing exploration and production portfolio,” it said.
PEL 37 covers three adjacent blocks over 17 000 square kilometres in the central Walvis Basin, offshore of Namibia. To date, four large prospects and three large leads have been mapped in detail. They have the potential for combined prospective resources of more than 900 million barrels of oil (recoverable).
OVL is India’s largest international oil and gas exploration and production company. It has 38 projects in 17 countries, including in Azerbaijan, Bangladesh, Brazil, Colombia, Kazakhstan, Mozambique, Myanmar, Russia, South Sudan, Sudan, Venezuela, Vietnam and New Zealand.
It currently produces about 285 000 barrels of oil and oil equivalent gas per day, and had total oil and gas reserves (2P) of about 704 million tons of oil equivalent 1 April.
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