OVL, IRP Red Sea strike oil in Egypt

ONGC Videsh (OVL), the overseas arm of India’s largest oil producer Oil and Natural Gas Corporation (ONGC), and its partner IRP Red Sea Inc have made a second oil and gas discovery in an offshore block in Egypt.

The discovery was made off the North Ramadan Concession in Gulf of Suez, in which the company had discovered oil in April 2007, OVL said in a statement. The first discovery has not yet been put on commercial production.

The flow rate of both oil and gas from the latest discovery is lower than the first discovery well, the company said. The company did not disclose the size of the oil and gas reserves in the Egypt field.

“A further analysis for development of the prospect is in progress,” OVL said.

OVL holds 70 per cent in the North Ramadan Concession, while IPR has the remaining 30 per cent.

The North Ramadan concession is 290 sq km in size and is surrounded by some of Egypt's most prolific producing oil fields in the Gulf of Suez.

OVL has participating interest in 35 projects in 17 countries across the world, the company said on its website. It is currently producing oil and gas from two blocks in Sudan, one each in Vietnam, Syria, Russia and Colombia. It discovered oil in one block in Brazil, which is currently being developed with production expected to begin in 2009-10. Oil and gas have also been discovered in two blocks in Myanmar, two in Egypt and one in Iran, where the company is studying if it will be commercially viable to produce the oil and gas. The remaining projects are in exploration phase.