Polarcus line up 3D shoot over OPL 279

By Hector Igbikiowubo
SEISMIC player, Polarcus  has received a letter of intent from Indian joint-venture OMEL Exploration and Production Nigeria for 3D seismic acquisition project over Block OPL 279, offshore Nigeria.

Polarcus said work on the 530 square kilometre 3D survey will start in October and is expected to take about 25 days to complete.

It added that the Polarcus Naila would carry out the shoot. It would be recalled the Indian Government granted state-owned Oil and Natural Gas Corporation (ONGC) Videsh the approval to invest $359 million during the first exploration phase in two Nigerian deep water blocks, Oil Prospecting License (OPL) 279 and OPL 285.

ONGC Videsh budgeted about $195 million for OPL 279 and another $164 million for OPL 285 including signature bonus and acquisition cost, according to a government statement.

Hindu Business Line reported that the Indian Cabinet Committee on Economic Affairs had authorised ONGC Videsh Ltd (OVL) to provide funding support to ONGC Mittal Energy Ltd (OMEL) for OVL’s share of expenditure of $195 million for block OPL 279 and $164 million for block OPL 285 in Nigeria.

According to the official statement, the entire requirements of OVL’s share of investment in the project would be met by OVL from its own resources and/or through borrowings from the domestic/international market, without any budgetary support from the Government of India.

The report indicates that incorporating the committed work programme, budgets for OPL 279 and OPL 285 for the first exploration phase of five years covering from 2007to 2012 has been prepared by OMEL, with an estimated expenditure of $389 million for OPL 279 and $399 million for OPL 285.

The company paid a signature bonus of $50 million for OPL 285 and $75 million for OPL 279.
The two blocks were awarded to ONGC Mittal Energy (OMEL), a joint venture between ONGC Videsh and Mittal Investments Sarl, in May 2005.

OMEL is the joint venture between Mittal Investments Sarl, the private investment company of India’s Mittal family, and ONGC Videsh Ltd (OVL), the overseas investment arm of ONGC.

The joint venture had in the 2005 oil bid round won OPL 279 and OPL 285 after committing to invest $6 billion in Nigeria’s infrastructure in exchange for the two blocks.

The Indian consortium pledged to build 180,000 barrels per day Greenfield refinery, 2,000 megawatts power plant and an East-West Railway line.

Already the steering committee and the working committee of the Nigerian National Corpo-ration (NNPC) had approved the refinery as OMEL’s preferred downstream commitment.

OMEL had carried out a pre-feasibility study for the refinery by engaging an international consultant.
NNPC officials recently conducted due diligence and also visited two refineries built by OMEL.

OPL 279 is a deepwater offshore exploration block in which OMEL, through its wholly owned subsidiary company OMEL Exploration & Production Nigeria Ltd, holds 45.5 per cent participating interest and operatorship of the block.

The other co-venturers in the block include EMO, an indigenous company, with 40 per cent stake and French oil major Total with 14.5 per cent participating interest.

The other block OPL 285 is also a deepwater block, where OMEL, through OMEL Energy Nigeria, holds 64.33 per cent participating interest and operatorship.

The other partners in the block include EMO,10 per cent; and Total, 25.67 per cent interest.-