OVL inks pact for 4 Libyan blocks

ONGC Videsh (OVL), the overseas investment arm of Oil and Natural Gas Corporation, today said it has signed an exploration and production sharing agreement with Libya's National Oil Corporation for exploration of the African country's offshore Contract Area 43.

Contract Area 43 was awarded to ONGC Videsh under the recently concluded third licensing round in Libya. "The contract area consists of four blocks, measuring total area of 7,449 sq km, and is located in Cyrenaica offshore in the Mediterranean Sea," ONGC Videsh said in a statement.

According to the agreement, ONGC Videsh is committed to undertake seismic surveys and drill at least one exploration well in the area over five years.

A previously drilled exploration well in the area had indicated presence of hydrocarbons, ONGC Videsh said. The company already holds 49 per cent participating interest in two Libyan blocks "" NC-188 and NC-189 "" and 100 per cent operating interest in Block 81-1 awarded under the second licencing round in 2005.