DEHRADUN, India -- ONGC Videsh Ltd. has signed an exploration and production sharing agreement (PSA) with National Oil Corp. of Libya for contract area 43. The PSA was part of the country's recently concluded third bid round.
The contract area consists of four blocks with a total area of 7,449 sq km (2,876 sq mi) in the Cyrenaica offshore area of the Mediterranean Sea. The block boundaries extend from the coastline to a water depth of about 2,200 m (7,218 ft).
OVL's work program includes acquiring 1,000 km (621 mi) of 2D seismic data and 4,000 sq km (1,544 sq mi) of 3D data, as well as drilling an exploratory well during the five-year exploration phase of the contract. About two-thirds of the contract area has sparse coverage of 2D seismic data. There is also a shallow-water exploration well that established the presence of hydrocarbons at the southwest boundary.
OVL made its first entry into Libya in June 2003, acquiring 49% participating interest in block NC-188 in Ghadames basin and NC-189 in the Sirte basin from Turkish Petroleum Overseas Co. OVL later won sole operatorship for block 81-1 in the Ghadames basin in Libya's second bid round in 2005. OVL opened an office in Tripoli in January 2006.