OIL-IOC to relinquish oil blocks in Libya

Oil India Ltd (OIL) and its partner Indian Oil Corporation (IOC) have decided to relinquish their onshore oil blocks in Libya. “Though hydrocarbons presence has been established in the blocks, it was not found to be commercially exploitable,” Mr N M Borah, Chairman and Managing Director, OIL said.

The Indian consortium where OIL is the operator has just completed its minimum work programme well within scheduled time and budget. “We have decided to relinquish these blocks and are submitting all the necessary documents required by the Libyan authority to accept our request,” he told Business Line.

In its maiden attempt as an operator OIL along with IOC had acquired two onshore areas in the Sirte Basin in the face of stiff international competition. In Libya the acreages are divided into areas which comprise of blocks.

These acreages were won by the Indian public sector consortium during the Libyan Exploration and Production Service Agreement (EPSA IV) Bid Round I, 2004. In Areas 86 and 102/4 in Libya (comprising of five onshore blocks), OIL has 50 per cent participating interest and is an operator. Remaining stake is held by IOC.

The consortium had drilled two exploratory wells in Area 86 and one well in 102/4. The consortium has four more blocks in Libya in Area 95/96 with Sonatrach of Algeria as operator where work programme is progressing on schedule.

OIL has presence in eight countries having exploration blocks in seven, discovered block in one. The countries include Gabon, Iran, Nigeria, Yemen, Timor Leste, Egypt and Venezuela.

Mr Borah said that his company is actively pursuing opportunities to acquire oil and gas assets in Africa, West Asia, South East Asia, South America, CIS countries and Russia, and is willing to associate with reputed companies to jointly fulfill this objective.