The Hindu Business Line : Essar Oil readies plans for Papua New Guinea, Australia bids

Essar Oil has finalised plans to bid for onshore and shallow water oil and gas exploration blocks in the forthcoming bidding round in Papua New Guinea and Australia.

While chances of forging tie-ups for bidding in foreign shores are not ruled out, sources said that the company might prefer to go solo.

"We are not looking for offshore blocks particularly the deep or ultra deepwater blocks. Accordingly, we are not looking forward to strategic tie-ups," a senior company official said.

Discovery in CB-ON/3

Meanwhile, the company has commissioned its second phase of exploration-drilling programme in the onshore block (CB-ON/3) in Mehsana in Gujarat. It had made a 500 barrels per day commercial discovery in the block and is currently developing the same.

According to sources, in the second phase the company will drill four exploratory wells in the block of which one is drilled and being tested while the rest will be drilled beginning May.

On its two onshore blocks in Assam, the official said Essar Oil has recently submitted its application for exploration licence with the State Government.

PSC awaits Govt nod

The much awaited production sharing contract (PSC) for development of the proven deepwater Ratna-R Series oilfield near Mumbai High is yet to be signed as the proposal is awaiting the final approval of the Union Finance Ministry.

ONGC, a 40 per cent natural partner in the block, has agreed to enter into PSC with operator Essar (50 per cent) and Premier Oil (10 per cent).

Exploration drilling for coal bed methane (CBM) is on at Ranigunj in West Bengal. The company has recently sought six months extension to complete the minimum work programme including drilling of 12 core holes and test wells.

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