Hydro and the Indian state oil company ONGC signed an agreement in Delhi on July 2. The agreement gives Hydro access to exploration acreage on the India shelf, mostly in deep water, and Hydro will also enter block 98/2 in the KG basin on the Indian East Coast with a10% equity share.
ONGC (Oil and Natural Gas Corporation Limited) will receive technological support from Hydro to increase the recovery of its Vasai East oil field. Hydro will also provide ONGC with offshore operator know-how.
Deep water expertise
“Hydro is very pleased to have signed this agreement that is the start of a strategic alliance between Hydro and ONGC” said Tore Torvund, Executive Vice President, speaking in Delhi. “The Indian shelf is an interesting exploration area that recently has yielded very good results. The agreement gives Hydro an opportunity to exploit our deep-water skills in close cooperation with ONGC. We are committed to transferring Hydro’s deep water knowledge and capabilities to ONGC”.
The exploration deal covers some 32 offshore blocks at depths up to 3000 meters. Hydro has the option to be joint operator with ONGC and take an equity share in any of these blocks.
Gas finds in the block
The 98/2 block that is operated by ONGC with Cairn as partner and Petrobras as prospective partner is in the appraisal phase after a number of gas finds have been made in the block.
Vasai East is an oilfield off the Western coast of India where there are challenges in producing oil from thin oil zones. Hydro has experience from developing such zones in the Troll field.
An extensive program for transfer of knowledge between the two companies will be implemented in particular through Hydro’s potential role as joint operator in deep water blocks.