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ONGC Videsh Acquires Part of Shell's Offshore Block in Egypt

06-15-2007

ONGC'S foreign arm ONGC Videsh is all set to acquire a 33% stake in Shell's high-prospect deep water block in the North-east Mediterranean region near Egypt. OVL will require the union cabinet's nod to go ahead with the investment of $380 million to pick up the stake.

The Egypt block has estimated the gas reserves of around 14 trillion cubic feet (tcf). The size is stated to be approximately the same as Reliance's approved gas find in the KG Basin.

Two of the six wells on the block have resulted in gas discoveries. The government is likely to support ONGC Videsh in the block development. The production is expected to begin by 2012.

The block is currently held by Shell, at a stake of 84%, and the Petronas of Malaysia, at a stake of 16%. Shell has already spent $300 million in exploring the field.