ONGC Videsh Ltd. alongwith its consortium partner IPR Energy Red Sea Inc. (a subsidiary of the Texas Independent IPR) has signed of the North Ramadan Concession Agreement with the Government of Egypt. The OVL/IPR consortium will invest in excess of US $ 31 million over the three phased exploration period which will consist of 5 exploratory wells and acquisition of 3D seismic over the concession area.
The Government of Egypt was represented by H.E. Minister of Petroleum Eng. Sameh Fahmy, IPR Energy Red Sea Inc. (IPR) was represented by President/CEO Dr. M K Dabbous and ONGC Videsh Ltd. (OVL) was represented by Executive Vice-President, Mr. S Roychaudhury.
OVL had earlier announced in March 2005 that it had won the award against competing bids from companies/consortia which included, among others, British Petroleum, Petro SA and Ludin. The block has a potential in-place oil of 600 million barrels. OVL has 70 per cent and IPR 30 percent participating interest in the block.
Mr. Subir Raha, Chairman of OVL, said that with the signing of the concession agreement, OVLís priority will be to complete all studies with a view to expedite drilling of the first exploration well and establish reserves in this prolific block.