ONGC Signed a Deal to Take Stake in Congo Block From Eni

ONGC Signed a Deal to Take Stake in Congo Block From Eni

ONGC 02-16-2007

Indian ONGC signed agreements with ENI to take 20-25 per cent stake in a Congo oil block and in return give the Italian firm 30-35 per cent stake in its Mahanadi basin block.

"The agreements were signed in Mumbai." ONGC official said.

Two sets of agreements were signed - one by ONGC Videsh Ltd Managing Director R S Butola for picking up stake in the deepwater block Mer Tres Profonde Nord in the Republic of Congo where ENI is the operator with 60 per cent stake while ExxonMobil has the remaining 40 per cent stake.

The other agreement was signed by ONGC Director (exploration) D K Pandey for giving ENI 30-35 per cent stake in Mahanadi deepwater block MN-DWN-2002/1.

ENI Chairman Roberto Poli was present on behalf of the Italian company.

ENI, which has found oil in an exploration well drilled in the Congo block, will carry ONGC's interest in the Mahanadi basin block for three wells costing 10-11 million dollars each, he said.

In July 2005 Eni won two licenses for the exploration in two areas named Block 8 and Block D-6. Block 8 lies onshore Rajasthan some 500 km from Jaipur while the offshore Block D-6 is located in the deep waters of the Indian Ocean some 130 km west of the Andaman Islands.

In September 2005 Eni and ONGC signed a Memorandum of Understanding establishing a cooperation between the two companies aimed at identifying new business opportunities in oil and gas exploration and production.