ONGC, swaps stakes in oil blocks with Italy's Eni

New Delhi, Feb 14 (UNI) Oil and Natural Gas Corporation (ONGC) today signed agreements with Italian oil company Eni to exchange stakes in exploration blocks in India and Congo.

Through the first agreement, Eni acquires a 34 per cent participating interest in the deepwater block MN-DWN-2002/1, located in the Indian eastern offshore, with acreage of about 10,000 square kilometres and water depth going in excess of 2,000 metres. This block lies in an area with high exploration potential.

ONGC had recently confirmed the discovery of commercial reserves of gas in Mahanadi, off the coast of Orissa. This agreement would provide the company with a collaborative partnership to meet technological challenges in the area.

Under the tie-up, Eni will apply the exploration experience and leading edge technology it has developed from its other international deepwater operations.

The agreement also foresees the potential for a joint operationship between Eni and ONGC in the development phase.

Through the second agreement, ONGC Videsh Ltd has acquired from Eni a 20 per cent participating interest in the MTPN exploration block, located in the deepwater offshore of Congo, where Eni has been present for long.

The block is situated in petroliferous Lower Congo Basin where substantial discoveries have already been made. Eni has already discovered oil and gas in this block. At present it is operating the block with Exxon Mobil as the other partner.

UNI