New Delhi: State-run explorer Oil and Natural Gas Corp. (ONGC) is firming up a proposal to buy up to 33% in an Egyptian deep-water gas block from operator Royal Dutch Shell, sources said on Thursday.
“Talks are at an advanced stage. Very soon, a high-level government panel will take a decision whether to allow ONGC to go ahead with the offer or not,” a source involved in the planned deal said. The value of the possible transaction is not known.
The deal for a stake in Shell’s North East Mediterranean Deepwater block is not being opened to bidding, and no swap arrangement between the two firms is involved, an industry source said. Shell has announced that the block, in which it holds 84%, has probable reserves of 15 trillion cubic feet (tcf), according to a US department of energy website.
The block holds initial in-place reserves of more than 1tcf with “sizeable upside”, the industry source said.