India's exploration major ONGC Videsh (OVL) has bagged a highly prospective exploration block in Egypt along with consortium partner IPR Energy Red Sea Inc (IPR), a subsidiary of US energy major Texas Independent.
"The Egyptian General Petroleum Corporation (EGPC) has announced the award of the North Ramadan Block No 6, which was the most contested block in EGPC's international bid round number one," OVL said in a statement on Tuesday.
OVL is proposing a total investment of $20 million in the block, which "has a potential in-place oil of more than 600 million barrels".
OVL is the overseas investment arm of exploration major Oil and Natural Gas Corporation (ONGC), which has so far acquired stakes in over a dozen properties in 10 countries including Russia, Iran, Sudan, Vietnam and Myanmar.
"The award of the Ramadan Block paves the entry of OVL in Egypt's hydrocarbon sector and OVL looks forward to successful development of the prospect," said Subir Raha, Chairman of ONGC.
"The development has come as a shot in the arm for OVL, as block No 6 is a highly prospective acreage adjacent to the North July Development Lease, which has been in production since 1991," said the statement.
{{/usCountry}}"The development has come as a shot in the arm for OVL, as block No 6 is a highly prospective acreage adjacent to the North July Development Lease, which has been in production since 1991," said the statement.
{{/usCountry}}The block covers 290 sq km in the central part of the Gulf of Suez.
There are adjacent "immediately drillable prospects", which OVL plans to pursue in the first phase of exploration, consisting of acquisition of 3D seismic data and drilling of three exploratory wells.
As joint operator with IPR, which is partnering OVL in the exploration of Block 24 in Syria, OVL has 70 per cent participating stake in the development phase of the Egyptian block, located in the central part of the Gulf of Suez province in Egypt offshore.