India's OVL clinches two major oil contracts in Qatar and Egypt
India's ONGC Videsh Limited (OVL), the overseas arm of ONGC, has won the prospective Najwat Najem Oil acreage, located in the Arabian Gulf in Offshore Qatar. OVL’s bid was chosen from among a dozen of companies.
The Appraisal, Development and Production Sharing Agreement for Najwat Najem oil structure in Qatar was signed between the Government of the State of Qatar and ONGC Videsh Limited (OVL) on 2nd March 2005 at Doha, Qatar by Mr. Abdulla Bin Hamad Al-Attiyah, Second Deputy Prime Minister and Minister of Energy and Industry, Government of Qatar and Mr. Subir Raha, Chairman of OVL.
Najwat Najem oil structure is located in the Arabian Gulf in offshore Qatar at a distance of about 100 km North East of Doha. The 120 square kilometers offshore acreage designated as Najwat Najem Oil Structure Area is located eastern offshore of the State of Qatar.
The oil structure was discovered several years ago and requires appraisal. The terms of this agreement call for an initial two years appraisal and based on the results, the development and production project will be carried out. This discovered field, to be connected to Halul Island for processing and export, will be operated by OVL.
The Qatari deal came just one day after the Indian firm announced that along with its consortium partner IPR Energy Red Sea Inc (IPR)-a subsidiary of the Texas Independent, they bagged the highly potential North Ramadan-block no 6 in Egypt. The Egyptian General Petroleum Corporation (EGPC) had awarded the block, which was the most contested block in EGPC international bid round no 1.
Speaking on the development Subir Raha, chairman, OVL stated that the award of the Ramadan Block paves the way for entry of OVL into the Egypt hydrocarbon sector and the organisation looks forward to successful development of the prospect.
The block covers an area of 290 Sq km in the central part of Gulf of Suez. There are adjacent immediately drillable prospects which will be pursued in the first phase of exploration consisting of acquisition of 3D seismic data and drilling of three exploratory wells, The total investment for these jobs has been committed at $ 20 million. The block has a potential in-place oil of more than 600 million barrels.
The OVL-IPR consortium won the award against competing bids from companies / consortia which include, among others, British Petroleum, Petro SA, and Ludin. OVL has 70 per cent participating interest during the development phase working as joint operator with IPR which is also partnering OVL in exploration block 24 in Syria. The North Ramadan block is located in the central part of the gulf of Suez province in Egypt offshore at a distance of two km to the north of GUPCO's giant July field.