ONGC-Mittal exit Turkmenistan oil block

Oil and Natural Gas Corporation (ONGC) and its partner steel baron Lakshmi N Mittal have exited an oil block in Turkmenistan after exploratory failure, leaving the once high profile joint venture with oil properties in just two countries.

ONGC-Mittal Energy (OMEL) - the joint venture of ONGC Videsh (OVL) and Mittal Investment Sarl, had in October 2007 acquired 30 per cent interest in offshore block 11-12, where German firm Wintershall held 34 per cent interest and Renmark's Mask Oil the remaining 36 per cent.

Two exploratory wells drilled on the block did not give clues of any major hydrocarbon presence, a source in the consortium said. "This prompted the consortium to surrender the block."

This followed OVL's forced exit from a gas block in Trinidad and Tobago. Mittal last year exited from offshore block North Coast Marine Area-2 (NCMA-2) which OMEL had won in 2007. This forced OVL, which did not want to go beyond 51 per cent interest, to exit the property that was estimated to hold in-place reserves of two trillion cubic feet.

OMEL, which was in 2005 seen as Mittal's big-time entry into oil and gas sector, is now left with a 13,000 barrels per day producing asset in Syria and two exploration blocks in Nigeria.

Sources said Mittal may be looking for exiting the Syrian property and has already put on block his interest in Caspian Investment Resources that he had acquired without involving OVL.