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ONGC to buy Shell's 33% stake in Egypt gas field

05-28-2007

ONGC Videsh of India, the overseas arm of state-run Oil and Natural Gas Corp (ONGC), plans to acquire Royal Dutch/Shell's 33% stake in a deepsea gas field off Egypt for $160 million and bring the fuel in liquefied form (LNG) to India.

Code-named ''Project Wonder'', the North East Mediterranean Deepwater Concession in the Egypt Mediterranean Sea, has Shell as operator with 100% stake and is estimated to hold close to 10 trillion cubic feet of gas reserves.

"We are not paying Shell for buying the stake but have agreed to pay for its share of exploration cost in 2007 of $140 million and a maximum of $40 million for future cost beyond 2007," an OVL executive said here.

OVL will also not contribute toward the past costs ($300 million) incurred by Shell till October 1, 2006.