ONGC Videsh Ltd, the overseas arm of state-run Oil and Natural Gas Corp, on Friday announced acquisition of US firm Vanco Energy Co's 30 per cent stake in an exploration block off the Ivory Coast, West Africa.
OVL has "reached agreement with Vanco Energy Co, USA to acquire 30 per cent participating interest in Block C1-112," the company said in a press release in New Delhi.
The acquisition will be completed once the Government of Ivory Coast approves the deal.
OVL had negotiated for acquiring 40 per cent stake in Block CI-112 but offered 10 per cent participating interest to sister concern Oil India Ltd.
The block will be in its second exploration period up to April 20, 2005; during this period, work commitment of one exploratory well is to be completed.
"OVL and OIL shall bear 30 per cent and 13 per cent respectively, against their participating interests of 30 and 10 per cent respectively, in the cost incurred during exploratory phase comprising geological and geophysical work done in the past, drilling of one exploratory well and one appraisal well," the release said.
In the event of successful discovery, both OVL and OIL will have rights to recover their cost.
The acquisition marks OVL's first foray into West Coast Africa, specifically Ivory Coast's oil and gas industry. The block is spread over an area of 4156 sq km in San Pedro Basin.
The hydrocarbon resource potential in the block is estimated to be in excess of one billion barrels.
"Block CI-112 has a good potential. This acquisition is especially significant as OVL's entry in the West African hydrocarbon sector. OVL is now present in ten countries," OVL chairman Subir Raha said.