ONGC Mittal Energy, (OMEL) has bagged two oil blocks - OPL 212 and 209 - in Nigeria. One of the relinquished blocks, which OMEL will now operate on a lease, is close to the Bongo fields of Shell - a discovered field with reserves of 1bn barrels. OPL 209, the other block, is close to the field operated by Exxon and Shell and has a reserve of 800m barrels.
Although, OMEL will be pumping in almost $6-bn back-to-back infrastructure support to Nigeria in return for the blocks, it has managed to acquire these blocks in the mini-bidding round by offering a signature bonus of just $50m and $65m respectively.
OMEL is now in negotiations with the Nigerian government over the production sharing contract for the blocks. It is likely to take on board a local content vehicle partner for the oil blocks.
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| Posted : 6/20/2006 |
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