OVL, the overseas arm of state-owned ONGC is likely to invest $1.45 billion
(approx Rs 7,105 crore) in Block-8 located in the western desert in southern
Iraq bordering Saudi Arabia.
The service exploration and production contract for Block-8 have been
concluded and the agreement is likely to be signed in the next couple of months.
The block already has a discovery and is estimated to hold 645 million
barrels of inplace reserves, of which 54 million are recoverable. OVL has
committed investing $86 million (approx Rs 427.162 crore) in two phases of
exploration and $1.45 billion in development of the reserves thereafter.
The contract will be a service contract wherein OVL will be paid about 18 per
cent rate of return on its investment.
Also See:
OVL gets
Government nod for investment in Satpayev block (22-Apr-09)