ONGC Videsh Ltd, the overseas arm of Oil and Natural Gas Corp, said on Thursday that it will acquire Anglo Dutch oil giant Royal Dutch/Shell's entire 50 per cent stake in an oil block in Angola for about $600 million.
"We have reached an agreement with Shell Development Angola B.V for acquisition of Shell's entire 50 per cent interest in the deepwater offshore Block 18 in Angola," OVL managing director Atul Chandra said.
The transaction is intended to be completed later this year, subject to Angola government approval and pre-emption rights of British Petroleum, which holds the remaining 50 per cent interest in the block.
First production from the Block 18 is targeted for 2007 and the expected peak production would be in excess of 200,000 barrels of oil per day (10 million tonnes). Of this, India's entitlement will be 5 million tonnes, he said.
OVL is spearheading the campaign for acquisition of oil and gas fields abroad with a view to secure oil security for the nation. India is 70 per cent dependent on imports to meet its oil requirement.
