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OVL to hold 4 pc; IOC, BPRL 3 pc each in Abu Dhabi oilfield

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Press Trust of India New Delhi
Last Updated : Feb 12 2018 | 5:40 PM IST
ONGC Videsh Ltd, Indian Oil Corp (IOC) and Bharat PetroResources Ltd (BPRL) will split the 10 per cent stake in a giant offshore oilfield in Abu Dhabi in 4:3:3 ratio.
The three firms on Saturday had signed contract to pick up a combined 10 per cent stake in Abu Dhabi National Oil Co's (ADNOC) Lower Zakum concession, Offshore Abu Dhabi, for USD 600 million.
OVL will take 40 per cent of the stake, that is, 4 per cent in the entire oilfield. The remaining 60 per cent would be equally split between IOC and BPRL (3 per cent apiece), officials said.
While OVL is the overseas investment arm of state-owned Oil and Natural Gas Corp (ONGC), BPRL is a unit of state-owned Bharat Petroleum Corp Ltd (BPCL).
Besides paying a signature bonus of USD 600 million, the three partners would bear 10 per cent of the planned USD 32 billion capex on the field over a 40 year period.
They said the current production from the field is about 400,000 barrels of oil per day (20 million tonnes per annum) and Indian consortium's annual share shall be about 2 million tonnes.

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The field is to achieve plateau target of 450,000 barrels of oil per day by 2025.
This is the first time that Indian oil companies have taken part in an Abu Dhabi oil and gas concession.
The concession has a term of 40 years with an effective date of March 9, 2018.
ADNOC holds 60 per cent interest in the field and is finalising the potential partners for the remaining 30 per cent.
OVL is India's largest international oil and gas company, having 39 projects in 18 countries, including Azerbaijan, Bangladesh, Brazil, Colombia, Kazakhstan, Mozambique, Myanmar, Russia, South Sudan, Sudan, Namibia, Venezuela, Vietnam and New Zealand.
It currently produces about 277,000 barrels of oil and oil equivalent gas per day and has total oil and gas reserves (2P) of about 704 million tonnes of oil equivalent as on April 1, 2017.

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First Published: Feb 12 2018 | 5:40 PM IST

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