Oil India Limited has recently signed an Exploration and Production Sharing Agreement with the National Oil Corporation of Libya, along with its consortium partners Sonatrach, the National Oil Company of Algeria and another Oil PSU, Indian Oil Corporation to acquire four exploration blocks in Libya. The Agreement covers Contract Area 95/96 in the Ghadames basin and comprises a total of four blocks, 1 block within 95(2) and 3 blocks within 96 (1 2 & 4).
Mr M.R.Pasrija Chairman and Managing Director of Oil India Limited along with the Executives of the other companies of the Consortium signed the agreement on 25/5/2008, at Tripoli, Libya in the presence of Dr. Chakib Khelil, Minister of Energy and Mines, Republic of Algeria. The Agreement was signed by Dr. Shokri Mohamed Ghanem, NOC Chairman, on behalf NOC, Libya. The signature ceremony was attended by NOC Management Committee Members and the Ambassadors of Algeria and India.
These blocks have a total area of 6,934 sq kms in the south western part of Libya around 700 kms from Tripoli adjoining the Algeria border which the Consortium won in the Public Bid Round 4 for gas exploration, held on 9/12/2007. Estimated reserves from the identified prospects indicated more than 2.0 Tcf gas and 95 MMbbl condensate with possible oil considered as an upside. Overall, the block with fair amount of seismic coverage, drilled wells, inside discoveries and proximal fields is a very prospective venture. The surface terrain is desert with production infrastructures available towards northwestern side, outside the offered area.
The Consortium is committed to a minimum work program of 2000 km of 2D, 2600 km2 of 3D and 8 exploration wells, at an estimate cost of 152 million US Dollars.
The geological setting of the area is the south western part of Ghadames sedimentary basin, one of the major Paleozoic tectonic units of the country extending to Algeria in west and Tunisia towards north.
Mapping has identified a number of large prospects towards west and north west and moderate sized prospects towards east, central, south and southeast of the area. The prospects mapped are identified at all the Paleozoic (Ordovician -Devonian) levels with confidence. Due to the paucity of seismic data, the interpretation towards the eastern part is constrained.