The Hindu Business Line : ONGC picks up 30 pc more in Cambay block

Hindustan Oil Exploration Company (HOEC) is the operator of the block and ONGC and Gujarat State Petroleum Corporation Ltd are the other two consortium partners.

HOEC owns 50 per cent participating interest and the rest is shared by the other two partners.

In April last year, HOEC said it had drilled a well in the block and had struck oil.

The announcement then said that the oil flowed at an initial rate of 315 barrels a day, and some associated natural gas.

ONGC, being the licensee for the block, had the right to take an additional 30 per cent stake.

HOEC today announced that ONGC has exercised the right.

HOEC and GSPC will cede 15 per cent stake each.

Consequently, HOEC’s participating interest in the block slides to 35 per cent.

OIL may do same

Similarly, HOEC had announced in January that it had discovered oil in a block in Arunachal Pradesh.

The well drilled in the AAP-ON-94-1 block produced oil flowing at an initial rate of 75 barrels a day.

Here too, HOEC, with a 40.32 per cent participating interest, is the operator.

Indian Oil Corporation (with 43.54 per cent and Oil India Ltd (with 16.13 per cent) are the other consortium members.

OIL is the licensee of the block and has a right to acquire an additional 30 per cent. ‘OIL, which intends to come out with its IPO shortly, is in its ‘silent period’ and is now willing to make an official comment.

However, industry sources expect that OIL will exercise the option.

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