OIL plans overseas drilling in Libya by 2009

Kolkata: Oil India (OIL) proposes to launch its maiden overseas drilling campaign in Libya in early 2009. It is the operator in six overseas onshore exploration blocks, five in Libya and one in Gabon; IndianOil has non-operating interest in all the six blocks.

“We will launch a four-well drilling campaign in Area 86 and 102 in Libya in early January,” the OIL chairman Mr M. R. Pasrija said. The company holds 50 per cent operating interest in five contiguous blocks in Area 86 and 102, acquired during the bidding rounds held in 2004 and 2005 respectively.

According to Mr B. N. Talukdar, director (exploration and development), the company has already completed the 2D and 3D seismic surveys in the five blocks. The first well would be drilled in Area 86 where data interpretation was nearing completion. Tending process for launching the drilling campaign was initiated in August, he said.

In addition, the OIL-IOC combine recently entered into agreement with the Libyan authorities for non-operating interests in four more blocks in Area 95 and 96. Algeria’s Sonatrach is the operator in all four blocks.

Overall, OIL has interests (including both operating and participatory interest) in 14 overseas blocks. Interestingly, having started aggregating the exploration acreages in India beginning NELP-II, OIL is yet to enter into drilling phase in any of the blocks, except in 4,065 square km onshore block (MN-ONN-2000/1) in Mahanadi basin which is approaching the deadline for completion of the minimum work programme.

“We will launch one well-drilling campaign in the block shortly,” a company official told Business Line adding that the cash call for exploration activity was expected to move up steadily beginning the next fiscal with increase in drilling intensity.

OIL has interest in 21 NELP blocks (excluding four awarded in the recently concluded NELP-VII) and 16 nomination blocks in India. The company is operator in 12 onshore NELP blocks.

Meanwhile OIL is negotiating with Coal India for setting up a Rs 400 crore pilot coal-to-liquid (CTL) project at Digboi in Assam.

According to Mr Pasrija, while OIL will have controlling stake in the project, CIL, IndianOil and Engineers India Ltd (EIL) are expected to hold participatory interests. According to the proposal, in phase-I CIL will supply the required coal from its mines at Margherita in Assam for production of 2,500 barrels a day of synthetic crude which will be refined at the IOC refinery at Digboi.