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“The exploration of blocks bagged in the latest round will cost around $75-80 million. Every block is examined and analysed based on geological prospectivity. Based on overall matrix, minimum work programme is undertaken,” said a senior company official, who didn’t wish to be named.
OIL emerged as provisional winner and operator for shallow water block MB-OSN-2010/2 in ninth round of auction under Nelp regime. In addition, it is operator for two on-land blocks. The explorer will also work in consortium for nearly five deep-water blocks with ONGC. “This time, OIL could spread its wings to offshore blocks. The company wanted to work for few more blocks in country’s prolific Cambay basin. However, it lost in the bidding,” the official said.
OIL wants to farm-in overseas explorer for offshore drilling. “It (partnership) helps you in a way that your financial exposure gets diluted to the extent and also partners competence is brought on to the table,” said another senior official.
“No big oil giants have shown any interest to participate with us. However, our continued efforts will be directed at having a tie up with good technology. If we get a good partner, we will be open about that,” he added.
The company is working in Assam’s Arakan basin that has good reservoir potential and has the potential to attract foreign players. OIL’s partnership with explorers who specialise in offshore drilling will help, opined Vinay Nair, who tracks oil and gas companies at Mumbai-based Angel Broking.
Companies such as BP, Niko Resources and Hardy Oil and Gas are already working in Indian sedimentary basins.
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