OVL picks up stake in Australian block

ONGC Videsh Limited (OVL) has reached an agreement with Antrim Energy Inc, Canada to acquire a 55 per cent stake in an exploratory block in Offshore Australia.

OVL will acquire a 55 per cent interest in the Block WA 306 P, located in the North West Shelf in Offshore Australia, according to an agreement signed on August 27, 2004. The acquisition will become final, after approval by the Australian Government. The other partner in the block is Magellan Petroleum (W.A) Pty. Ltd.

While this is ONGC's tenth overseas acquisition in the last three years, it marks OVL's first foray into the Australian Oil and Gas industry.

Speaking to mediapersons on the sidelines after signing a Memorandum of Understanding with the government of Karnataka, ONGC chairman Subir Raha said, "We have completed the acquisition of property in western Australia from a Canadian firm on Sunday night. The oil block is known as Browse. It is our tenth overseas acquisition in the last three years."

Raha did not reveal the cost of this acquisition.

When asked about further acquisition plans, he said that ONGC was reviewing around 300 to 400 applications at any point of time. "There are certainly more acquisitions in the pipeline", he added.

In a statement issued on Monday evening, the company has said that the block is spread over an area of 4,600 sq/km and contains a cluster of drilling prospects in the Barcoo Sub-basin.

With this acquisition, OVL has, for the first time, started extending its area of operation and influence in the hitherto sparsely-explored regions of the Browse Basin.

"The stake in block WA 306 P in the North West Shelf, Offshore Australia is our first acquisition in Australia and we believe that this opening should pave way for OVL's participation in many other opportunities in the Australian hydrocarbon sector. The block has a good potential and we expect to spud the first well in the coming few weeks." Raha said.