The Hindu : Business : OIL signs pact for blocks in Libya

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Friday, May 30, 2008
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OIL signs pact for blocks in Libya

Special Correspondent

NEW DELHI: In a major breakthrough for the state-run Oil India Limited (OIL) in securing oil and gas assets abroad, the company and its partners have entered into an agreement with National Oil Corporation of Libya for four exploration blocks in that country that are estimated to hold two trillion cubic metres (tcm) of gas reserves.

According to an official spokesman here, a consortia of OIL, Algeria’s Sonatrach and Indian Oil Corporation, signed exploration and production sharing agreement with the National Oil Corporation of Libya.

The agreement covers contract area (95/96) blocks 2/1, 2 and 4 in Ghadames basin, which the consortium won in the public bid round 4 for gas exploration, held in December 2007.

Commitment

The consortium is committed to a minimum work programme of 2,000 km of 2D, 2,600 km of 3D and eight exploration wells at an estimated $152 million, the spokesman said.

Area 95/96 covering a total area of 6,934 sq. km. is located in the South Western part of Libya around 700 km from Tripoli adjoining the Algerian border.

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