Business Daily from THE HINDU group of publications
Monday, Jun 30, 2008
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Business Daily from THE HINDU group of publications Monday, Jun 30, 2008 ePaper | Mobile/PDA Version | Audio |
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Petroleum Corporate - Overseas Investments
OVL had signed an appraisal, development and production sharing agreement with the Government of Qatar on March 2, 2005 for appraisal of the Najwat Najem oil structure. Richa Mishra
New Delhi, June 29 ONGC Videsh Ltd (OVL) has decided to relinquish the Najwat Najem oil block in Qatar. A senior official told Business Line that OVL has communicated to the Qatari authorities and has informed its board on the decision to surrender the asset after it discovered that the reserves in the block are low and not commercially viable. The official said that OVL has also decided to release the rig acquired for undertaking drilling activity in the block. OVL, the overseas investment arm of ONGC, had signed an appraisal, development and production sharing agreement (ADPSA) with the Government of Qatar on March 2, 2005 for appraisal of the Najwat Najem oil structure. The block is the first overseas project executed by OVL wherein the company has both 100 per cent ownership and is the sole operator. OVL has struck hydrocarbons in the block. The first appraisal well in the Najwat Najem structure was spudded in July 2007. OVL had firmed up two locations for evaluating the structure and assessing and proving its commerciality. While the first well spud showed oil and gas, the second well showed encounter of gas. The ADPSA comprised an initial two-year appraisal phase followed by a development phase. The minimum work committed during the appraisal phase is reprocessing and interpretation of seismic data, drilling of two appraisal wells and an integrated multidisciplinary study to assess the potential of the area. The agreement came into effect on May 19, 2005 with the signing of the Emiree Decree (termed the effective date). The Najwat Najem oil structure is located in the Arabian Gulf in offshore Qatar at a distance of about 100 km north-east of Doha Port. The oil structure is at a water depth of approximately 135 feet. Nod for OVL investments in Venezuela, Qatar More Stories on : Petroleum | Overseas Investments | Oil & Natural Gas Corporation Ltd
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