OIL-IndianOil combine launches hydrocarbon hunt in Libya
New Delhi   05-Feb-2010
The consortium acquired the five exploratory blocks in Area 86 and 102 during bidding rounds in 2004 and 2005, respectively. The consortium of Oil India Ltd (OIL) and IndianOil has launched the much awaited drilling campaign in five onshore blocks in Libya in January. IndianOil and OIL own 50 per cent interest each in all the blocks with OIL being the operator. The consortium acquired the five exploratory blocks in Area 86 and 102 during bidding rounds in 2004 and 2005, respectively. “We have launched the drilling campaign in Libya, last month,” Mr. B. M. Bansal, Director (Business Development), IndianOil, told Business Line. <b>Non-operating interests</b> While comments were not available from OIL, the company Chairman, Mr. N. M. Borah, had earlier announced completion of seismic data acquisition and interpretation and plans to launch a four-well drilling programme in the contiguous blocks in September-October 2009. Apart from the five blocks, OIL-IndianOil combine also acquired non-operating interests in four more blocks in Area 95 and 96 in 2008. Algeria's Sonatrach is the operator in these four blocks. The combine also owns exploratory rights in Gabon. Overall, OIL has exploratory interests (both operating and participatory) in 14 blocks overseas. <b>Upstream, downstream</b> Once restricted to refining, IndianOil is now moving towards upstream and downstream business integration. As part of its upstream aspirations, IndianOil has long been nurturing plans to acquire a mid-size exploration and production (E&P) company overseas in collaboration with OIL. The progress is, however, more rapid in the downstream segment. With the commissioning of a naphtha cracker at Panipat, IndianOil now expects to capture approximately 10 per cent of the country's polymer market by April-May. “We have already built a team of 300 people to manage the sales of petrochemical products through our 43 channel partners in 26 locations of the country (mostly in the North),” Mr. Bansal said, adding that the first sale is expected in April.