ONGC-Mittal gives up oil block in Nigeria.

Oil and Natural Gas Corporation (ONGC)-Mittal Energy Ltd., the joint venture of ONGC and steel czar Lakshmi Mittal, has relinquished an oil block in Nigeria after the African nation refused to relieve it of a $6-billion downstream investment commitment.

OMEL - a joint venture of ONGC Videsh and Mittal Investment Sarl — had in 2005 won the right to explore for oil and gas in offshore OPL-279 and OPL-285 blocks after committing to invest $6 billion in an 180,000 barrels per day greenfield refinery, a 2,000 MW power plant or a railway line from east to West of Nigeria. It paid a signature bonus of $50 million for OPL-285 and $75 million for OPL-279.

Sources said the company had in 2012 relinquished deepsea block OPL-279 after prospective hydrocarbon zones did not offer any viable commercial development. It offered to continue with the other block OPL-285 provided Nigeria relieved it of the USD 6 billion commitment.


BS