ONGC bags oil block in Nigeria

Oil and Natural Gas Corporation (ONGC) has emerged a winner in the race for an oil block in Nigeria's joint development zone. This will be ONGC Videsh Ltd's (OVL) debut in Nigeria, the world's eighth largest oil producer and a major oil supplier to western Europe and the United States.

OVL, the overseas arm of ONGC, had in December entered into an agreement with Equator, the London Stock Exchange listed oil and gas exploration company, to jointly bid for oil blocks in West Africa.

ONGC and Equator had placed bids for blocks 2 and 4, which are in the joint development zone. The zone is estimated to hold reserves of 11 billion barrels and when fully operational could yield up to 3 million barrels a day.

Nigeria's Environmental Remediation Holding Corporation (ERHC) holding 15-30 per cent in each of the Blocks 2, 3, 4, 5, 6 and 9, sought potential partners last year.