Videocon, Gail, BPCL, HPCL and Oilex awarded Block in Oman

Dubai, Apr 3 (UNI) A consortium comprising Videocon Industries Ltd, Gail India, BPCL, HPCL and Oilex of Australia (Operator) has been awarded Block 56 in Oman for exploration and further development, after a keenly contested bidding round.

The award by the Ministry of Oil and Gas was made consequent to a strong minimum work programme proposed by the companies of 11 exploration wells along with associated seismic data acquisition (including 3D).

The consortium, which is 75 per cent Indian companies, hopes to enhance the overseas reserves of oil that can be earmarked for refining in India.

The minimum work programme is estimated to cost 30 million dollars, an statement said.

Videocon, Gail and Oilex would have 25 per cent each stake in the consortium while BPCL and HPCL would have 12.5 per cent each.

Block 56 is on the eastern flank of the central salt producing oil field in Oman. It produces approximately 700,000 barrels of oil per day and has potential oil bearing structures and un-risked oil reserves in excess of four billion barrels.

Videocon already has manufacturing facility for airconditioners in Oman and can provide the immediate infrastructure required by Oilex to establish a joint venture in Oman to take-up the exploration.

The consortium will now pursue further opportunities for securing exploration blocks both on-shore and offshore in Oman, taking advantage of the infrastructure that would be established for Block 56.

This is the first time that Videocon is obtaining a block internationally, though the company is already entering into farm in agreements for blocks in Australia.

In addition to looking at further opportunities in Oman, Videocon intends to pursue proposals for exploration blocks in other countries like Yemen, Libya, etc.

Videocon has a 25 per cent interest in India's largest private sector producing oil field at RAVVA in Andhra Pradesh.

UNI SR MP HT1748