Financial Daily from THE HINDU group of publications
Saturday, Dec 03, 2005


Group Sites

Corporate - Alliances & Joint Ventures
Industry & Economy - Petroleum

BG India, ONGC to operate 3 offshore deepwater blocks

Our Bureau

New Delhi , Dec. 2

BG Exploration and Production India Ltd (BGEPIL) and Oil and Natural Gas Corporation (ONGC) on Friday announced that they have reached an agreement to jointly operate three offshore deepwater exploration blocks on the east coast of the country.

These three blocks cover a total area of 3,090 sq km.

Subject to agreement on farm-in arrangements and Government's approval, BGEPIL and ONGC would each own a 50 per cent interest in these blocks, according to an official statement.

The blocks, KG-OS-DW III ("GD"), KG-OS-DW ("KD") and KG-OS-DW ("KD Extn"), are located in the Krishna Godavari (KG) Basin, and in the vicinity of several blocks in which there have been recent discoveries.

BGEPIL has agreed to pay $5 million up-front payment for each block upon receipt of Government approval of the farm-in, and additional consideration would be paid towards exploration costs as well as a payment made upon discovery, the statement said.

ONGC and BG India have also agreed to explore other mutually beneficial opportunities in India and overseas. The deepwater exploration blocks were assigned to ONGC by the Government on a nomination basis and on New Exploration Licencing Policy terms for exploration and development in partnership with a global major oil and gas company. ONGC had marketed these blocks during NELP-V with the Ministry of Petroleum and Natural Gas.

Mr Subir Raha, Chairman and Managing Director, ONGC, said, "ONGC is happy to welcome BG, after Cairn and ENI, as joint operator in these exploration blocks. We are happy that the joint operatorship framework promoted by ONGC in the Panna, Mukta and Tapti producing fields has generated the confidence for such a partnership in India and abroad."

Mr Frank Chapman, Chief Executive, BG Group Plc, said, "This arrangement marks the beginning of BG India's diversification of its upstream portfolio from current interests in producing fields on the west coast of India to a new growing hydrocarbon region on the east coast. The KG Basin looks set to become an important gas province for India and we are committed to playing a part in its development."

Related Stories:
ONGC inks pact with NLC for underground coal gasification
ONGC to step up crude output — To set up 3 more refineries
ONGC draws blank in discoveries, Cairn Energy tops the list: DGH

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

More Stories on : Alliances & Joint Ventures | Petroleum

Stories in this Section
Reliance cuts petro-chem prices

Toyota offers 1% interest on loans for Innova buyers
L&T bags order for Hyderabad airport terminal building
`Ranbaxy geared up to manufacture bird flu drug'
SREI Infrastructure launches two financial products
Telcon to invest Rs 200 cr for capacity expansion
Panyam stock split okayed
Radha Madhav Corpn plans IPO
Seshasayee Paper to seek shareholders' nod to enhance borrowing limit
BEML unveils Chinese-made wheel loader at Excon 2005
Sunstar to invest Rs 19 cr in 2 years
Clause 18 compliance — The form and substance
Reliance demerger case hearing adjourned
Grindwell Norton to buy bonded abrasives unit of Orient Abrasives
Damodar Valley Corpn's Bengal, Jharkhand power plant proposals hit snag
BG India, ONGC to operate 3 offshore deepwater blocks
Apollo Hospitals ties up with Johns Hopkins arm — To set up diagnostic lab in Hyderabad
ONGC to prepare investment blueprint to boost output
Asia Cryo-Cell plans 2 overseas banks
Swasti Power hopes to execute hydel project at Uttaranchal before time
Orchid's betalactam unit to yield Rs 270-cr sales
Tata Motors Nov sales up 9.1 pc
Subhash Chandra steps down as Zee Tele MD
New DuPont India President
Nish Patel takes over as MD of Alfa Laval India

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line