|ONGC Videsh wins Oil acreage in Qatar Offshore|
03 March, 2005
Close on the heels of Egypt deal, ONGC Videsh Limited (OVL), the overseas arm of ONGC, has won the prospective Najwat Najem Oil acreage, located in the Arabian Gulf in Offshore Qatar. OVL’s bid was chosen from among those by a dozen companies, against the bids invited, in June 2004, by the Government of the State of Qatar for this offshore Oil Structure, which is situated in one of the world’s most prolific petroleum systems.
The Appraisal, Development and Production Sharing Agreement for Najwat Najem oil structure in Qatar was signed between the Government of the State of Qatar and ONGC Videsh Limited (OVL) on 2nd March 2005 at Doha, Qatar by His Excellency Mr. Abdulla Bin Hamad Al-Attiyah, Second Deputy Prime Minister and Minister of Energy and Industry, Government of Qatar and Mr. Subir Raha, Chairman of OVL.
Najwat Najem oil structure is located in the Arabian Gulf in offshore Qatar at a distance of about 100 km North East of Doha. The 120 square kilometers offshore acreage designated as Najwat Najem Oil Structure Area is located eastern offshore of the State of Qatar.
The oil structure was discovered several years ago and requires appraisal. The terms of this agreement call for an initial two years appraisal and based on the results, the development and production project will be carried out. This discovered field, to be connected to Halul Island for processing and export, will be operated by OVL.
After signing the Agreement, Mr. Subir Raha sincerely thanked H.E. Mr. Abdulla Bin Hamad Al-Attiyah, Second Deputy Prime Minister and Minister of Energy and Industry, Government of the State of Qatar, for the confidence reposed in the ONGC Group of Companies by providing the operatorship opportunity for the first time in the Arabian Gulf, and assured him of safe and efficient operations.
About ONGC Videsh Limited (OVL):
1. ONGC Videsh Limited (OVL) is the international arm and a wholly owned subsidiary of the Oil and Natural Gas Corporation (ONGC), the premier integrated National Oil Company of India. ONGC Group (which also comprise of a 12 MMTPA refinery at Mangalore in the state of Karnataka in India) had a turnover of over US $ 10 Billion in the financial year 2003-04 and made a post tax profit of over US $ 2 Billion. The company has a market capitalization in excess of US $ 27.5 Billion. ONGC is listed on the Mumbai Stock Exchange.
2. OVL conducts the international operations of ONGC and has a mandate from the Government of India for overseas acquisition of equity oil to augment energy security of India. OVL currently has participating interests in 14 oil & gas projects spread in eleven countries around the world. Major projects of OVL include the Sakhalin-1 in Russia, Block 06.1 in offshore Vietnam, the Greater Nile Oil Project in Sudan, exploration blocks 5A & 5B in Sudan etc. The other acreages of OVL are in Australia, Egypt, Iraq, Iran, Ivory Coast, Libya, Myanmar and Syria.
3. The current production of oil and gas of ONGC in India is in the excess of 53 million tons per year of oil and oil equivalent gas [MMTPA (O+OEG)] and current production of the company from its foreign oil & gas acreages is close to 4 MMTPA(O+OEG). The company has aligned strategic plans to elevate the current production levels from its overseas oil & gas assets to reach 20 MMTPA (O+OEG) by year the 2010, through strategic acquisitions of additional oil and gas assets.