ESSAR Exploration & Production Ltd (EEPL), an Essar group company,
has become the first Indian oil company to enter Australia by winning
two offshore petroleum exploration blocks in the northern basins of the
country.
Confirming the development, MD & CEO of Essar Oil Naresh Nayyar
said, “Acquiring the blocks has a strategic importance to the company.
We are now well placed as far as our overseas developments are
concerned. We are in geographies that are stable and this will work to
our advantage.”
Essar had participated in the bidding round along with several global
oil majors including Chevron, Exxon Mobil among others, a company
official involved with the bidding process said. It would be difficult
to put a value of the reserves since the oil blocks are exploratory in
nature, but they are within a region that has had several finds in the
recent past, the official said. Essar will have to pay a 40% tax on its
profits from the blocks as per the norms of the Australian government
but will have the freedom to bring in the oil and gas to India.
“EEPL has been awarded two exploration permits NT/P77 and NT/P78 in
shallow offshore in northern territory of Australia. The blocks fall in
a proven petroliferous basin close. These blocks will help the Essar
group consolidate its presence in Southeast Asia & Australasia and
integrate its operations with other blocks in the sector,” a company
official said. EEPL has exploration & production (E&P) blocks
in India, Madagascar, Nigeria, Indonesia and Vietnam.
Essar was the sole bidder for the block NT/P77 which is located in the
Bonaparte Basin off the northern territory. The company offered a
guaranteed work programme of 950 square km of new 3D seismic surveying,
geotechnical studies and two wells to an estimated value of $59
million. The secondary work programme consists of 600 km of new 2D
seismic surveying, geotechnical studies and one well to an estimated
value of $31 million, he said.
EEPL has recently won one block in Mumbai offshore under the seventh
round of New Exploration Licensing Policy (Nelp VII). It also operates
exploration blocks in India in Cambay and in Assam basins.
Essar’s oil and gas portfolio include E&P block in Mehsana
(Gujarat) that has currently started commercial production. It has also
been awarded a coal bed methane (CBM) block at Raniganj in West Bengal,
and two more E&P blocks in Assam.
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