OVL to buy 15% stake offshore Namibia block: Report

OVL CMD NK Verma

ONGC Videsh, the overseas arm of Oil and Natural Gas Corporation (ONGC) will be acquiring stake in offshore Namibia block. A company statement said that OVL through its wholly owned indirect subsidiary ONGC Videsh Vankorneft Pte. Ltd (OVVL)) has signed definitive binding agreements with Tullow Namibia Ltd (Tullow), a wholly...
owned subsidiary of Tullow Oil plc, for acquiring 15 per cent participating interest in Namibia Petroleum Exploration License 0030 for Block 2012A and related agreements (License) from Tullow’s existing participating interest of 25 per cent in the License.
Eco Oil and Gas Namibia (Pty) Ltd with 32.5 per cent participating interest, Azimuth Namibia Ltd with 32.5 per cent participating interest and National Petroleum Corporation of Namibia (Pty) Ltd with 10 per cent participating interest are other partners in the License, the statement added.
The License is currently under first renewal exploration period and the joint venture partners are carrying out data evaluation for identifying a drill prospect. Eco is currently the operator of the License and Tullow shall acquire another 15 per cent participating Interest and assume the role of operator from Eco under the License, in case Tullow elects to proceed into the second renewal exploration period. The acquisition is subject to satisfaction of customary conditions precedents, including Namibian regulatory and joint venture partner’s approvals as well as grant of a 12-month extension to the first renewal exploration period by the Namibian regulatory authority.
OVL is a Miniratna PSU under the administrative control of the ministry of petroleum and natural gas. The primary business of OVL is to prospect for oil and gas acreages outside India, including exploration, development and production of oil and gas. OVL owns Participating Interests in 32 oil and gas assets in 16 countries and contributes 12 percent and seven percent of oil and natural gas production of India, respectively. In terms of reserves and production, OVL is the second largest petroleum company of India, next only to its parent company, ONGC.