Sunday, December 30, 2007

OVL hits oil in Najwat block off Qatar shores

OVL hits oil in Najwat block off Qatar shores
28 Dec, 2007, 0448 hrs IST,Rajeev Jayaswal, TNN

NEW DELHI: ONGC Videsh Ltd (OVL) has struck black gold in Arabian Gulf block off Qatar. The Najwat Najem block is the first overseas project executed by OVL wherein the company has both 100% ownership and is the sole operator.

“As per preliminary indications, oil has been encountered in the Shuaiba and Arab formations. The second well will also be completed by January 2008. We are hopeful that this will lead to the development stage,” a source in the petroleum ministry said.

The exact size of the discovery is not known yet as it has not been formally approved. OVL spudded its first appraisal well in the Najwat Najem structure on July 6, 2007. OVL had firmed up two locations for evaluating the structure and assessing and proving its commerciality.

OVL signed an appraisal, development and production sharing agreement (ADPSA) with the Qatari government on March 2, 2005 for the Najwat Najem oil structure appraisal in the country as an operator. The agreement came into effect on May 19, 2005 with the signing of the Emiree Decree (termed the effective date).

ADPSA is for a period of 20 years from the date of the Emiree Decree and comprises of an initial two year appraisal phase followed by a development phase. The minimum work committed during the appraisal phase is reprocessing and interpretation of 200 sq km of seismic data, a preliminary G&G study, drilling of two appraisal wells and an integrated multi-disciplinary study to assess the potential of the area.

The Najwat Najem oil structure is located in the Arabian Gulf in offshore Qatar at a distance of about 100 km north east of Doha Port. It lies at a distance of about 18 km off the Halul island in the state of Qatar. The Jurassic lime stones are the main reservoirs of this structure.

The Najwat Najem oil structure is in the Persian Gulf, at a water depth of approximately 135 feet.

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