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Monday, 01 December, 2008, 22:10 GMT | more >>

ONGC set to buy out Cairn



By Upstream staff 

ONGC is set to buy back Cairn India’s stake in Block CB-ONN-2001/ in Gujarat state's Cambay basin for around 50 million rupees ($1.3 million).

Cairn India, an offshoot of the UK’s Cairn Energy, holds a 30% interest in the block, which covers 215 square kilometres, with the remaining 70% held by ONGC.

A senior ONGC official told The Hindu that the company’s board has given the green light for buying Cairn’s stake in the onshore permit.

The permit was awarded to ONGC as part of the third round of new exploration licensing policy (NELP), when the outfit held 100% interest and operatorship.

Subsequently, Cairn had joined as a farm-in partner in the licence and bought a 30% stake.

“It is an exploratory block and phase one activity has been completed. The partners have drilled four exploratory wells and initial prospects are encouraging,” said the official. A final commitment well was drilled and abandoned in April last year.

ONGC plans to drill more wells in the block, after a recent discovery in the adjoining area made the company upbeat about the prospects in this block also, added the official.


Wednesday, 09 April, 2008, 01:52 GMT  | last updated: Wednesday, 09 April, 2008, 06:29 GMT

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