ONGC Videsh Acquires Stake in Offshore Ivory Coast Block

ONGC Videsh Ltd. has reached agreement with Vanco Energy Company to acquire 30% participating interest in an exploratory block, offshore Ivory Coast. The acquisition will be completed after approval by the Government of Ivory Coast.

OVL has negotiated acquisition of 40% stake in Block CI-112. It offered 10% Participating interest to Oil India Ltd retaining 30% with it for which Agreements were signed on Wednesday, September 1, 2004. The block will be in its second exploration period upto 20 April 2005; during this period, work commitment of one exploratory well is to be completed. OVL and OIL shall bear 39% and 13% respectively against their Participating Interest of 30% and 10% respectively, in the cost incurred during exploratory phase comprising Geological & Geophysical work done in the past, drilling of one exploratory well and one appraisal well. In the event of successful discovery, both OVL and OIL will have recovery rights.

The acquisition marks OVL's first foray into West Coast Africa, specifically Ivory Coast's Oil and Gas Industry. The block is spread over an area of 4156 sq. km in San Pedro Basin. The hydrocarbon resource potential in the block is estimated to be in excess of one billion barrels. "Block CI-112 has a good potential. This acquisition is especially significant as OVL's entry in the West African Hydrocarbon Sector. OVL is now present in ten countries." said Subir Raha, Chairman, OVL.