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Richa Mishra

New Delhi, Nov. 10 ONGC-Mittal Energy Ltd (OMEL) has pushed back its plans to start the first phase of hydrocarbon exploration in Nigerian block OPL-279 due to technical reasons.

The joint venture between ONGC Videsh Ltd (OVL) and Mittal Investments had plans to start exploratory activity in the block by August. But now the target is December end.

Mr Sudhir Maheshwari, Managing Director, Mittal Investments, said: “Due to unsatisfactory performance of the chosen rig, drilling in OPL-279 (scheduled in July/August) was cancelled. Subject to rigs becoming available, we expect this activity to now commence in end-December.”

A new rig has been chosen, which will commence drilling for OPL-279 and be used for drilling for OPL-285 in 2010, subject to Nigerian authorities’ approval, he said. Earlier, the joint venture had planned that the first rig will go down in the block in August. OMEL had in 2005 won rights to explore in OPL-279 and OPL-285 after committing to invest $6 billion in the core sector of Nigeria. It paid a signature bonus of $50 million for OPL-285 and $75 million for OPL-279.

OPL-279 is a deepwater offshore exploration block in Nigeria spread over 1,125 sq.km. The joint venture, through its wholly-owned subsidiary company OMEL Exploration & Production Nigeria Ltd, holds 45.5 per cent participating interest and operatorship of the block. The other partners in the block are EMO, a local Nigerian company with 40 per cent equity, and TOTAL, with 14.5 per cent participating interest. The block is in the exploration phase.

The other block, OPL-285, is also a deepwater offshore exploration block spread over 1,167 sq.km.

OMEL, through its wholly-owned subsidiary OMEL Energy Nigeria Ltd, holds 64.33 per cent participating interest and operatorship of the block. The other partners in the block are EMO with 10 per cent stake and TOTAL with 25.67 per cent.

More Stories on : Overseas Investments | Petroleum | Oil & Natural Gas Corporation Ltd

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