India Consortia Bag 3 Oil Exploration Blocks in Egypt
MUMBAI (Dow Jones Newswires), November 7, 2008
Two consortia of Indian companies led by state-run Gujarat State Petroleum Corp. have been awarded three offshore oil exploration blocks in Egypt, a senior GSPC executive said Friday.
"We have committed to spend at least $85 million in the three blocks over the next four years. But that's a conservative estimate. We may end up spending more," said M.Y. Farooqi a general manager for planning and development at GSPC.
One consortium, comprising GSPC, Hindustan Petroleum Corp. and Oil India Ltd., won two blocks. The second consortium - comprising GSPC and Adani Welspun Exploration Ltd. - won another block, he said.
GSPC will be the operator of all three blocks. The rights to the blocks were awarded by Egypt's Ganoub el Wadi Holding Petroleum Co., Faruqi said.
HPCL and Oil India each own a 25% stake in the two blocks - in Block 3 South Quseir and Block 4 South Sinai - while GSPC owns the rest.
In Block 5 South Gulf of Suez, GSPC owns a 60% stake while Adani Welspun Exploration Ltd. owns the rest.
Ganope had launched its 2008 licensing round in March 2008, offering 12 exploration blocks to both Egyptian and international companies. The blocks offered are in Red Sea, the South Gulf of Suez and the eastern and western deserts of Egypt.
GSPC was earlier awarded the North Hap'y offshore block in the Mediterranean Sea and an onshore South Diyur block in the Western Desert in Egypt. The company had committed to put in $200 million for exploration activity in these two blocks.
HPCL has interest in 19 blocks in India, and in Oman and Australia as part of a consortium.
The Egyptian government had announced its intent to implement an oil and gas exploration and development program in 2008-09 involving a total foreign investment of $7 billion.
Copyright (c) 2008 Dow Jones & Company, Inc.
- Oilex Progressing Work Plan to Unlock Gas Resources in India's Cambay Block (Jun 27)
- Oilex Commences Gas Production from Bhandut Field in Gujarat, India (Apr 08)
- GeoGlobal Updates ANK 41-S Drilling In India (Dec 22)
Company: Hindustan Petroleum more info
- India Refiner HPCL Sees More Scope For Foreign Buys After ONGC Deal (Jul 20)
- India Approves Creation of State Oil Giant in $4.6 Billion Deal (Jul 19)
- Iraq Undercuts Saudi Arabia In Q2 To Grab Top Spot In India Oil Market (Jul 19)
Company: Ganoub El Wadi Petroleum Holding Company (GANOPE) more info
- The Gulf Hibiscus-Pacific Oil JV Clinches Offshore Block 2 in Gulf of Suez (Aug 05)
- India Consortia Bag 3 Oil Exploration Blocks in Egypt (Nov 07)
- Dana Gas Receives Award for Egypt Operations (May 05)