ONGC Videsh Wins Exploration Block Offshore Iran

An ONGC Videsh Limited-led consortium has been selected by NIOC for award of exploration service contract for the Farsi offshore exploration block. The National Iranian Oil Company had offered 13 blocks for exploration service contract to international oil companies. A consortium of Indian public sector oil companies, led by ONGC Videsh Limited (OVL, 40 percent) and comprising Indian Oil Corporation (IOC, 40 percent) and Oil India Limited (OIL, 20 percent), participated in the international bidding.

The Farsi exploration block already has two oil discovery wells and is estimated to have hydrocarbon potential in excess of 500 million barrels. The block covers an area of 3500 square kilometers in the Persian Gulf with water depths ranging from 20-90 meters.

The contract is likely to be formally signed shortly. It is for the first time that a consortium of three Indian public sector oil companies shall be working together outside India where OVL would discharge the role of Operator.

The consortium of Indian oil companies proposes to reprocess the available seismic data for the block and drill exploration wells after acquiring adequate seismic data. The investment, spread over the next four years, will approximately be Rs 130 crores.