"We are originally in fray to pick 90 per cent stake in the two blocks but because of the delay that offer no longer stands," he said.
OVL, the overseas arm of Oil and Natural Gas Corp, is now being offered a much lesser stake, he said but did not give details.
The Cabinet had on February 1 deferred a decision on allowing OVL to plough back into two exploration blocks in Nigeria that it earlier lost to a Korean firm despite being the highest bidder. Petroleum Minister Murli Deora said a decision was deferred as doubts were cast on the size of investment.
He could not say when the Cabinet would retake the proposal. OVL had sought permission to pay signature bonus of $485 million to Nigera's department of petroleum resources for beginning work on OPL-321 and OPL-323.
The Indian firm got the opportunity to get back the blocks after Korean National Oil Corp delayed submission of bank guarantees for payment of signature bonus. OVL, which was the top bidder for both the blocks but had to give away to KNOC as the latter was given the first right of refusal by the Nigerian government, offered signature bonus of $310 million and work commitment of $525.5 million in OPL 323.
As for OPL 321, it offered $175 million as signature bonus and $397 million work commitment. The Empowered Committee of Secretaries had approved OVL taking 90 per cent equity in both blocks with the rider that in case there is any reduction in the participating interest, the amount will be reduced in proportion.
The in-place reserve estimates for OPL 321 ranges between 5,550 to 12,950 million barrels with recoverable reserves estimated at 1,540 to 3,600 million barrels.
OPL 323 has in-place reserves 4,430 to 9,550 million barrels with recovery estimated at 1,730 to 3,950 million barrels.
