Videocon, GAIL, HPCL likely to bow out of Oman block |
By e4p Correspondent, Thursday, September 10, 2009, 15:58 Hrs [IST] |  |
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Category: Oil & Gas | Tags: Oman Government, hpcl exploration block Oman, Oilex Australia | Share:  |
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A consortium of Oilex of Australia, Videocon Industries, GAIL, Bharat PetroResources Ltd (BPRL) and Hindustan Petroleum Corporation Ltd (HPCL) is likely to give up an exploration block in Oman.
The companies are looking at either giving away the block to some other company or surrendering it to the Oman Government. The conglomerate got the block in 2006 from the Sultanate of Oman after paying around Rs 220 crore.
GAIL, Oilex and Videocon have a 25 per cent participating interest each in the consortium, while BPRL and HPCL hold equal shares in the remaining 25 per cent. Oilex Australia is the operator of the block.
Currently, the consortium is holding talks with the Oman Government to revise the terms in the production sharing contract, as the block no longer seems to hold promising reserves. It is an onshore block located in the South Oman salt basin area and covers an area of 5,809 sq km. The drilling in the block began in early 2008.
Source : ProjectsToday
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