essar starts exploration with airborne survey in madagascar

Essar Starts Exploration With Airborne Survey in Madagascar

07-16-2008

Essar Exploration & Production Ltd. (EEPL), part of Essar Global Limited, has commenced work on its three onshore exploration blocks in Madagascar with the commissioning of airborne survey. EEPL has appointed Fugro Airborne Services Limited, Mauritius to acquire 12,000 kilometers of airborne Gravity & Magnetic data in these blocks over the next 6-8 weeks.

This will enable EEPL to interpret the sub-surface geology in the area. Fugro is the market leader in this specialized field and have successfully conducted similar surveys in Madagascar. This is the largest ever Air borne Survey in Madagascar for Oil & Gas exploration by any operator.

The survey was launched from the Fugro base in Tolagnaro on June 26, 2008 to coincide with "Independence Day" of Madagascar to pledge its support to not only reach self sufficiency in Petroleum products, but also export to neighbouring countries.

EEPL had won three blocks covering 30,000 square kilometers in the Morondava basin through the open bidding round.

The work program for the three blocks, in which Essar has 100% Participating Interest, includes Reprocessing of 2D-Seismic data (which has already been completed), Airborne Gravity & Magnetic Survey, 2D / 3D Seismic data API and Drilling of wells in the First phase as jointly agreed with OMNIS for which EEPL has planned an investment of USD 15 million.

The Essar Group is also exploring several other business opportunities in Madagascar and is keen on increasing their presence in the country.