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NOV 16 2016

ONGC Videsh eyes oil & gas blocks in Colombia

  • Economic Times, ET Bureau / Hyderabad
  • Created: Wed 16th NOV 2016

ONGC Videsh, through its subsidiary Mansarovar Energy Colombia (MECL), plans to bid for oil and gas blocks in Colombia. MECL is owned by ONGC Videsh and Sinopec in a 50:50 ratio.

“Mansarovar has established a footprint in the country and would participate in the Mini-Round 2016 ANH for onshore areas,” said Harvinderjit Singh, CEO of MECL. Singh told FE in an interview that the detailed list of blocks that will be offered to the public is not yet finalised with the terms and conditions as the tax reforms especially in the oil and gas sector are still under deliberation at congress although assurances have been given by the government that this sector is of utmost importance to the country as the present reserve position may not last for more than 5 years and the country may turn as net importer from net exporter if these reserves especially 51%of heavy oil are not tapped in a cost effective way.

“MECL will mainly focus on conventional onshore blocks, in this sense, there are several basins of interest as is the case with those found in the Lower Magdalena Valley and in the area of Sinu-San Jacinto. We are interested in evaluating more mature and more developed as the Middle Magdalena Valley, the Upper Magdalena Valley, Putumayo and Catatumbo basins.” Singh said.

The expectation is that the ANH offer blocks with high prospectivity and socio-environmental information adequately and properly aligned with other state agencies so as to allow the proper development of the exploratory phase. “We also expect that ANH approves before the round a new framework for direct awarding of areas of interest for E&P companies,” he said.

The company recently celebrated the first decade of its successful operations in Colombia having the vision of being recognized as a dominant heavy oil player in Latin America. During the last decade reserves of the company increased by 97% to nearly 100MMBbls at present.

As reported earlier by FE, in the current oil price scenario, Mansarover has turned its focus towards cost optimisation following the ‘philosophy of volume with value’ and unlocking potential of those subsurface barrels that become economically viable with crude oil prices. More focus is being givenon developing fully owned medium API Velasquez oil field having better revenue realisation where the company has recently gone for independent crude commercialisation with better returns.

MECL is a 50:50 joint venture company between ONGC Amazon Alaknanda from India and Sinopec Petroleum International from China. Over last ten years since inception in 2006 the company has positioned itself as a dominant player for heavy oil exploitation in Colombia using new technologies.

 

Tags

DIRECT Gas Oil ONGC China Energy Joint Venture ONGC Videsh Petroleum Tax Oil and Gas Crude Oil India ongc

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