OVL taking a relook at Ivory Coast

Company might take stake in three blocks in San Pedro Basin there

After a decade, ONGC Videsh Ltd (OVL), the foreign exploration and production arm of the central government-owned Oil and Natural Gas Corporation  (ONGC), is again looking at Ivory Coast.

 A company official said they were currently evaluating three blocks in the San Pedro Basin and might take a stake in these through the West African nation’s national oil company, Petroci. Of the three blocks, two are offshore and one onshore. “We are still looking at the data. If we find these blocks hold enough potential, we might look at them seriously,” said a senior company official.

The official added Petroci was also offering it some stake in an onshore block. OVL would decide shortly on this.

EXPLORING AVENUES

• Sept 2004: OVL made its first foray into the west coast of Africa, specifically Ivory Coast’s oil and gas industry, through an agreement with Vanco Energy Company of the US
• With reserves of natural gas and recent offshore finds of oil and gas, Ivory Coast has become an important supplier of energy to the sub-Saharan region
• So far OVL has participation in 35 projects located in 16 countries

If this goes through, this would be OVL’s second attempt at Ivory Coast, the English translation of Cote d’Ivoire, that country’s official name. OVL had in September 2004 made its first foray into the west coast of Africa, specifically Ivory Coast’s oil and gas industry, through an agreement with Vanco Energy Company of the US. OVL acquired 30 per cent  stake in an exploratory offshore block, after having negotiated for acquisition of 40 per cent — 10 per cent was offered as participating interest to Oil India Ltd (OIL). However, OVL and OIL encountered dry wells. The block was located in the San Pedro Basin, where Total, the French national oil company, has made discoveries.

With reserves of natural gas and recent offshore finds of oil and gas, Ivory Coast has become an important supplier of energy to the sub-Saharan region. Beside Petroci and France’s Total SA, the UK-based Tullow Oil and Anadarko Petroleum operate there.

In a bid to expand, OVL had last week also signed an agreement with Petroleos Mexicanos for cooperation in Mexico, the largest crude oil producing country in Latin America. The oil and gas sector there was recently opened for participation by foreign companies.

So far OVL has participation in 35 projects located in 16 countries. It currently produces about 160,000 barrels of oil and oil equivalent gas daily and has oil and gas reserves of 637 million tonnes of oil equivalent.