New Delhi, May 29 : Oil India Limited, an Oil PSU, has recently signed Exploration and Production Sharing Agreement with the National Oil Corporation (NOC) of Libya, along with its consortium partners Sonatrach, the National Oil Company of Algeria and another Oil PSU, Indian Oil Corporation to acquire four exploration blocks in Libya.
The agreement covers contract area 95-96 in Ghadames basin and comprises of a total of four blocks, one block within 95 (2) and three blocks within 96 (1 2 and 4).
M. R. Pasrija Chairman and Managing Director of Oil India Limited along with the executives of the other companies of the Consortium signed the agreement on May 25 at Tripoli, Libya in the presence of Dr. Chakib Khelil, Minister of Energy and Mines, Republic of Algeria.
Dr. Shokri Mohamed Ghanem, NOC Chairman, signed the agreement on behalf of NOC, Libya.
NOC Management Committee Members and the Ambassadors of Algeria and India attended the signature ceremony.
These blocks have a total area of 6,934 square kilometers in the south-western part of Libya around 700 kilometers from Tripoli adjoining the Algeria border which the Consortium won in the Public Bid Round four for gas exploration, held on December 9 last year.
Estimated reserves from the identified prospects indicated more than 2.0 Tcf gas and 95 MMbbl condensate with possible oil considered as an upside. Overall, the block with fair amount of seismic coverage, drilled wells, inside discoveries and proximal fields is a very prospective venture.
The surface terrain is desert with production infrastructures available towards northwestern side, outside the offered area.
The Consortium is committed to a minimum work program of 2000 kilometers of 2D, 2600 kilometers of 3D and eight exploration wells, at an estimate cost of 152 million dollars.
Geological setting of the area is the southwestern part of Ghadames sedimentary basin, one of the major Paleozoic tectonic units of the country extending to Algeria in west and Tunisia towards north.
Mapping has identified as a number of large prospects towards west and northwest and moderate sized prospects towards east, central, south and southeast of the area.
The prospects mapped are identified at all the Paleozoic (Ordovician-Devonian) levels with confidence. Due to the paucity of seismic data, the interpretation towards the eastern part is constrained.
The consortium won the blocks against stiff competition from several oil majors, including Gaz de France (with JAPEX and Lundin), Poliskie, British Gas and RWA.