ONGC & Eni Sign Co-operation Agreements for exploration interests in India and Congo Brazzaville

Oil & Natural Gas Corporation Ltd (ONGC) has announced that Eni, Italy and ONGC have signed two parallel agreements on February 14, 2007 in Mumbai, India, for the swap of participating interests in exploration blocks located in India and Congo Brazzaville.

Through the first agreement, Eni acquires a 34% participating interest in the deepwater block MN-DWN-2002/1, located in the Indian eastern offshore, with acreage of approx. 10,000 sq km and water depth going in excess of 2,000 meters. This block lies in an area with high exploration potential. ONGC had recently confirmed the discovery of commercial reserves of gas in Mahanadi, off the coast of Orissa. This agreement would provide the Company with a collaborative partnership to meet technological challenges in the area.

Eni will apply, in this new partnership, the exploration experience and leading edge technology it has developed from its other international deepwater operations.

The agreement also foresees the potential for a Joint Operationship between Eni and ONGC in the development phase. With this agreement, Eni reinforces its presence in India and its collaboration with ONGC, the national oil and gas Company of the country.

Through the second agreement, ONGC Videsh Ltd has acquired from Eni a 20% participating interest in the MTPN exploration block, operated by Eni, located in the deepwater offshore of Congo Brazzaville, and area where Eni has a long lasting presence. The block is situated in known petroliferous Lower Congo Basin where substantial discoveries have already been made. Eni has already discovered oil and gas in this block. Eni at present is operating the block with Exxon Mobil as the other partner.

The agreements were signed by Mr. Roberto Poli, Chairman Eni and Mr. R S Butola, Managing Director, ONGC Videsh Ltd for Congo Brazzaville and Mr. D K Pande, Director (Exploration), ONGC for Mahanadi deep water block in the presence of Mr. R S Sharma, Chairman and Managing Director, ONGC.

Source : Equity Bulls

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