IVRCL Infra buys Hyd-based oil exploration firm

IVRCL Infrastructure and Projects has entered into a share purchase agreement to acquire 100% shares of Alkor Petroo, an unlisted oil and gas exploration and production company of the Hyderabad-based Rs 45-crore Gorlas Group, for an undisclosed amount.

Alkor has five exploration blocks - three in Yemen and two in Egypt - along with Gujarat State Petroleum Corporation (GSPCL) and others, according to a release issued by IVRCL today.

While Alkor's participating interest is 25% in the three blocks in Yemen, it has 20% interest in the two blocks in Egypt.

"Based on the estimates of the resources by an internationally-reputed agency, block 19 in Yemen and block 6 in Egypt have a potential to earn revenues of over $1 billion for the company during the life of the respective blocks. The revenues for the other blocks are under evaluation,"  the release added.

GSPCL is the operator of all the five blocks, and IVRCL will invest about $50 million during the exploration phase.