ONGC Videsh Limited signs pact to grab 30% stake in Namibian project

During the financial year 2016-17, OVL has produced 12.57 mn tonne of oil and oil equivalent gas

ONGC Videsh, the overseas investment arm of Oil and Natural Gas Corporation (ONGC), on Monday said that it has entered into an agreement with Tullow Namibia Ltd to acquire 30 per cent participating interest in one of its projects in Namibia.

The company is set to acquire a stake in Namibia Petroleum Exploration License 0037 for Blocks 2112A, 2012B and 2113B and related agreements (License) out of Tullow’s existing participating interest of 65 per cent in the license.

Pancontinental Namibia (Pty) Ltd with 30 per cent and Paragon Oil and Gas (Pty) Ltd with 5 per cent participating interest are other partners in the license. Tullow is the operator of the license and shall continue to remain operator after acquisition by ONGC Videsh. An OVL statement said that the acquisition is subject to satisfaction of customary conditions precedents including approvals of Namibian regulatory authorities and joint venture partners. The completion of the present transaction would mark ONGC Videsh entry in Namibian offshore.

During the financial year 2016-17, OVL has produced 12.57 million tonne of oil and oil equivalent gas, as against 8.92 MT in 2015-16. For the financial year 2017-18, it has set a production target of 14.3 MT.