ONGC-Mittal combine wins 2 blocks in Nigeria
The joint venture has won two blocks in Nigeria, the latest oil and gas hot spot of the world.india Updated: May 19, 2006 22:45 IST
ONGC Mittal Energy Ltd (OMEL), the joint venture between Oil and Natural Gas Corporation and LN Mittal Group, has won two blocks in Nigeria, the latest oil and gas hot spot of the world.
The ONGC-Mittal combine has won two oil blocks, Numbering 209 and 212, company sources said.
The OMEL was to have first right of refusal over three blocks, including part of block 209 where ExxonMobil discovered the giant Erha field.
In return, the consortium would commit to invest $6 billion in a new 180,000 barrel per day refinery, 2,000 megawatts of power and an east-west railway.
Global Steel, also of India, has rights over block 281 in return for commitments to build a $1.8 billion compressed natural gas plant.
ONGC Videsh has part of block 218, where Stat Oil has discovered both oil and gas, as compensation for its loss of a share in two highly prospective blocks it lost due to a dispute with Korea in a licensing round last year.
The Nigerian government had earlier promised that OMEL would be awarded blocks without pledging investments in Nigeria's infrastructure as a special case.
OMEL had assured investments up to $6 billion in power and rail infrastructure.
The special dispensation for OVL follows intervention by Prime Minister Manmohan Singh last time around when OVL lost out on a potential block to Korean National Oil Company due to a last minute policy change by Nigeria.