Sterling Energy and Exploration Production Company (SEEPCO) may sell its 25-30 percent stake in four hydrocarbon blocks in Nigeria to ONGC Videsh, the overseas arm of Oil & Natural Gas Corp (ONGC).
The value of the deal, which is not yet finalised, is expected to be $2 billion. Both the companies entered into a confidentiality agreement for the deal and OVL is reportedly conducting due diligence on the asset.
OVL, which already has interest in two offshore blocks in Nigeria, plans to invest in the above four blocks located in the Niger Delta in order to boost production. The blocks are OPL 277, OPL 280, OPL 2005 and OPL 2006 in the Niger Delta.
SEEPCO won a reconnaissance licence for OPL 277 in Nigeria in 2005. It is in the process of strengthening its oil services such as drilling, shipping, oil chemical manufacturing and seismic surveys. Earlier, Sandesaras had initiated discussions with Oil India to hive off stake.
SEEPCO, which is owned by Mumbai-based Sandesara Group, said the conglomerate has proven reserves of 280 million barrels of oil and has the potential to discover another 2 billion barrels of oil and 2 trillion cubic feet of gas from four Nigerian blocks in which ONGC may buy a stake.
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