29 May 2007 - 13:20
  • News Code: 105864

ONGC Videsh plans to acquire Royal Dutch/Shell"s 33 pc stake in a deepsea gas field off Egypt for $160 million and bring the fuel in liquefied form (LNG) to India.

Shell holds 100-per cent stake in the North East Mediterranean Deepwater Concession in the Egypt Mediterranean Sea Code-named "Project Wonder", and estimated to hold close to 10 trillion cubic feet of gas reserves.

 

ONGC Videsh officials said, "We are not paying Shell for buying the stake but have agreed to pay for its share of exploration cost in 2007 of $140 million and a maximum of $40 million for future cost beyond 2007," the official said.

 

OVL will also not contribute toward the past costs ($300 million) incurred by Shell till October 1, 2006.

 

Besides carrying Shell in the development cost, OVL will also pay development bonus to Shell up to a maximum of $19.425 million at the time of award of development lease by the local government and $35.343 million production bonus at the time of start of commercial production.

 

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News Code 105864

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