ONGC pacts with Norsk Hydro to develop deepwater oil, gas blocks

New Delhi, July 2 (UNI) Country's upstream major Oil and Natural Gas Corporation Ltd (ONGC) today tied up with Norwegian Deepwater expert Norsk Hydro Produksjon AS to develop deepwater oil and gas blocks off the Indian coasts.

An agreement, envisaging cooperation between the two oil giants for developing the continental shelf of India, has been signed here.

ONGC Chairman and Managing Director R S Sharma said that he sees this as a major landmark in ONGC's maturity in deepwater oil and gas exploration and production.

Norsk Hydro is Norway's state-run Oil company, is specialised in world-class project execution skills, especially in deepwaters and rough seas.

The support and cooperation with strategic partnership with Norsk Hydro will not only help ONGC to build up the technology, knowledge and confidence to produce from deep-sea acreages, but will also help ONGC acquire sophisticated technology for completion of deepwater wells, a statement said.

Norsk Hydro's experience in various offshore projects and their capabilities in providing high-tech solutions, will be particularly useful to solve the challenges in Vasai East, for which ONGC will pay Norsk Hydro seven million dollars.

Norsk Hydro agrees to acquire a Participating Interest of 10 per cent for the deepwater block KG-DWN-98/2 in Krishna-Godavari, with an investment cap of 26 million dollars during appraisal phase and with an option to increase it by another 10 per cent.

The Norwegian firm may go for Participating Interest in more NELP blocks once they examine the data in the next six months.

ONGC has 32 offshore exploration blocks under NELP, of which 26 are in deepwaters and 6 in shallow-waters. Of the 26 deepwater blocks, 12 are in ultra-deepwaters.

ONGC has 100 per cent Participating Interest in 12 blocks and the balance is with others having various Participating Interests.

Mr N K Mitra, Director (Offshore) and Mr D K Pande, Director (Exploration), inked the agreement on behalf of ONGC and Mr Tore Torvund, Executive Vice President of Norsk Hydro, signed on the dotted lines on behalf of the Norwegian producer.

This agreement is the culmination to a run-up of events, especially the 'Protocol of Intent' signed between ONGC and Norsk Hydro in Norwegian capital Oslo on September 1, 2005, during the visit of a high-level Ministerial delegation headed by the then Petroleum and Natural Gas Minister, for cooperation in some Deepwater blocks off Cuban Republic and the West Asia.

UNI