Oil-IndianOil combine to start drilling in Libyan blocks
New Delhi   13-Jun-2009
The consortium of OIL India Ltd and IndianOil will launch a four-well drilling campaign in five onshore blocks in Libya in September-October the consortium owns 100 per cent interest in all the blocks with OIL as the operator. "We have already completed 2D and 3D seismic data interpretation. The Libyan National Oil Company is satisfied at the progress of exploration activities in these blocks. We are now gearing to launch the drilling campaign in September-October this year," the OIL Chairman, Mr. N.M. Bora, told Business Line, The consortium acquired the five exploratory blocks in Area 86 and 102 during bidding rounds in 2004 and 2005, respectively. In addition to the five blocks, OIL-IndianOil combine has acquired non-operating interests in four more blocks in Area 95 and 96 in 2008. Algeria's Sonatrach is the operator in all four blocks. <b>Cash Call</b> According to Mr. Bora, the cash call of the company for exploration activity will increase steadily beginning 2009-10 as a large number of exploration acreages in India and abroad will enter the drilling phase. The company has provisioned a Rs 2,300-crore capex for E&F business in this fiscal. In India, OIL has interests in 25 NELP blocks and 16 nomination blocks. Most of the NELP blocks will enter the drilling phase beginning this fiscal. Reiterating the company's focus in acquiring more E&P assets in abroad, Mr. Bora said that the OIL's plan to expand its presence in the downstream refining and petrochemicals sector was shelved. The company currently has participatory interests of 26 per cent and 10 per cent, respectively, in Numaligarh Refinery Ltd and Brahmaputra Cracker and Polymer Ltd in Assam. On its proposed coal-to-liquid project in Assam, Mr. Bora said that while the project was put on the back burner due to fall in crude prices last year, R&D activities on the same are still continuing.