Oil and Natural Gas Corp (ONGC) is likely to get back two deep-water oil blocks in Nigeria, which were earlier awarded to a Korean company by the Nigerian government three years back.
ONGC Videsh (OVL) had won these blocks 321 and 323 in August 2005 committing Rs 2376.5 crore as a signing amount. However, these were awarded to Korean National Oil Corp (KNOC) by the Nigerian government on the ground that the Korean firm had a first right of refusal over the blocks.
However, this allocation was cancelled in January 2006 when KNOC paid only Rs 450.8 crore on signing the Production Sharing Contracts for these blocks.
On January 6, 2009 Nigeria’s energy ministry informed OVL that these blocks would be restored to the company if it paid the Rs 2376.5 crore bonus in full within 60 days.
Reports quoted that OVL is currently evaluating the offer and is expected to send a response before March 6.
Currently OVL and partner Lakshmi N Mittal holds three blocks in Nigeria namely the OPL-279, OPL-285 and OPL-246.