Lok Sabha Question No. 2429 (UNSTARRED), answered on 2015-12-14
Subject: Investments abroad by companies
Ministry: PETROLEUM AND NATURAL GAS
Asked by: SANJAY JAISWAL, B. SREERAMULU

## LOK SABHA UNSTARRED QUESTION NO.2429

TO BE ANSWERED ON 14 TH  DECEMBER, 2015

## INVESTMENTS ABROAD BY COMPANIES

## 2429.  DR. SANJAY JAISWAL: SHRI B. SRIRAMULU:

## पैट्रोल ियम और प्राक ृ तिक गैस मंत्री

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) whether the Oil and Natural Gas Corporation Limited  (ONGC/ONGC  Videsh Limited(OVL)/State  owned  oil  companies  have  planned  bilateral  energy  trade  between African/European/Russian oil producers/countries in the next few years;
- (b) if so, sthe details thereof along with value of assets/oil reservoirs acquired/stake bought in foreign companies by ONGC/OVL/oil companies abroad and the time by which exploration and production of crude oil and natural gas from these oil blocks are likely to be started, oilfields/gas blocks/country/company-wise
- (c) whether the Government has any plans to expand  the scope of cooperation between India and Africa in the hydrocarbon space and if so, the details thereof;
- (d) whether Iran has withdrawn the offer of production sharing contract for the development of Farzad-B gas fields from the ONGC Videsh Limited led consortium and if so, the details thereof along with any proposal to develop Iran oil and gas resources/projects; and
- (e)  whether  public/private  sector  companies  have  discovered  crude  oil  and  natural  gas discoveries in foreign/neighbouring countries during the last three years and the current year and if so, the details thereof along with the present status of commercial production in these gas blocks, oil fields, country/company-wise including Private/Public Sector Companies?

## ANSWER

पैट्रोल ियम और प्राक ृ तिक गैस मंत्रािय में राज्य मंत्री ( स्विंत्र प्रभार ) ( श्री धमेन्द्र प्रधान ) MINISTER OF STATE(INDEPENDENT CHARGE) IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

- (a)   Indian Oil companies view Africa and Russia as important sources of energy supplies given the sizable hydrocarbon resources in these regions.  Indian oil companies are interested in investing in the E&P activities in these countries subject to satisfactory techno-commercial viability, country risks and regulatory approvals.
- (b) Details of assets acquired by oil companies are given at Annexure-I.
- (c) India is hosting the 4 th India Africa Hydrocarbon Conference on January 21-22, 2016 to expand the scope of cooperation between India and Africa.
- (d)  The issue of Farzad-B Oil field in Iran is still under negotiation between ONGC Videsh Limited and National Iranian Oil Company.
- (e)  Information with regard to Public Sector companies is at Annexure-II.

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## Annexure referred to in reply to parts  (a) & (b) of Lok Sabha Unstarred Question No.2429 to be answered on 14 th December, 2015 regarding investments abroad by companies

## The details of assets owned by companies

## I. ONGC Videsh Limited

## CIS/Russia/Europe

Azerbaijan  -  Azeri,  Chirag  and  Deep  Water  Gunashli(ACG)  Oil  Fields  -  ONGC  Videsh acquired  2.7213%  Participating  Interest  (PI)  on  28 th March  2013  from  Hess  Corporation  at  a consideration  of  813.56  million  USD.    The  field  is  producing  since  1997  and  current  rate  of production from the fields is 638000 bopd.

## Africa

Mozambique - Rovuma Area - 1 Offshore Mozaqmbique - ONGC Videsh has acquired 16% PI, in two stages, at a total consideration of USD 4.125 billion - 6% from M/s Videocon on 7 th January 2014 and 10% from Anadarko Mozambique Area 1 Limitada (Anadarko) on 28 th February 2014.  The Area 1 presently has estimated recoverable gas resource of 75 tcf.  Gas is planned to be marketed as LNG.  First LNG is expected in the year 2020.

## II. Indian Oil Corporation Limited

IOCL has participating  Interest(PI) in  five  oil  and  gas  blocks  in  African  countries  with  a plan of investment of US$43 million in the next few years in these blocks.

| Block/(Entry through)   | Location/ Nature of Project   | Consortium Partners                                                                                                                     | Value of stake acquired by IOC (US$ Million)   | Remark                                                                                                                |
|-------------------------|-------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|
| Shakthi (Farm-in)       | Onshore, Gabon                | OIL-50% (operator) IOCL-50%                                                                                                             | 6.25 (Entry cost)                              | Year of production would be decided based on the discoveries during exploration phase and subsequent development plan |
| OML142 (Bid Round)      | Onshore, Nigeria              | Summit Oil Int'l Ltd(Nigeria)-30% (operator) Suntera Nigeria 205 Ltd(Sn205)*-70%*comprises SRL 142 Holding Ltd-50%, IOC-25% and OIL-25% | Nil                                            | Year of production would be decided based on the discoveries during exploration phase and subsequent development plan |
| Area 95-96 (Bid Round)  | Onshore, Libya                | Sonatrach-50% (operator) IOC-25% OIL-25%                                                                                                | 2.5 (Signature Bonus paid)                     | Year of production would be decided based on the discoveries during exploration phase and subsequent development plan |
| Area 86 Bid Round)      | Onshore, Libya                | OIL-50% (operator) IOC-50%                                                                                                              | NIL                                            | MWP completed                                                                                                         |
| Block 102/4 (Bid Round) | Onshore, Libya                | OIL-50% (operator) IOC-50%                                                                                                              | 1.5 (Signature Bonus paid)                     | MWP completed                                                                                                         |

## III. Oil India Limited

| Country   | Name of Project                                         | Participating companies along with P.I.                                              | Present Produc- tion (OIL's share)   | If not Producing, Expected Date of Production   |   Expenditure / Investment $USD Million (Till 30 Sept 2015) | Major Issues / Highlights / Problems, If Any (March 2015)                                                                                     |
|-----------|---------------------------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------|-------------------------------------------------|-------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| Libya     | Area-95 / 96                                            | SONATRACH - 50% (Op) * OIL - 25% IOC -25%                                            | NIL                                  | Under Exploration& Appraisal                    |                                                       36.05 | Total 5 wells drilled and discovered both oil and gas. All operations suspended since 19.05.2014 due to hostile law &order situation.         |
| Gabon     | Shakthi-II                                              | OIL - 50 %(Op) IOC - 50%                                                             | NIL                                  | Under Exploration& Appraisal                    |                                                       69.93 | Two Appraisal wells have been drilled. Close grid 2D Seismic Data being acquired. Development Plan is also under preparation.                 |
| Nigeria   | OML142                                                  | Summit Intl. -30% (Op) Suntera Resources Ltd. - 35% OIL - 17.5% IOC - 17.5%          | NIL                                  | Under Exploration                               |                                                       15.59 | 125 Sq Km of 3D acquisition completed. Processing and interpretation of Acquired 3D seismic data is yet to be taken up.                       |
| Yemen     | Block 82                                                | MEDCO - 38.25% (Op) Kuwait Energy - 21.25% OIL - 12.75% IOC - 12.75% YGCO - 15% (CI) | NIL                                  | Under Exploration                               |                                                        6    | MWP under suspension since February 2015 due to adverse law and order situation. Operator has sent requests for declaration of Force Majeure. |
| Venezuela | Project Carabobo - 1                                    | CVP - 71%                                                                            | 573 BOPD                             | Early Production commenced                      |                                                       58.24 | Early accelerated production commenced since end of December 2012.                                                                            |
| Venezuela | Project Carabobo - 1                                    | Repsol - 11%                                                                         | 573 BOPD                             | Early Production commenced                      |                                                       58.24 | Early accelerated production commenced since end of December 2012.                                                                            |
| Venezuela | Project Carabobo - 1                                    | OVL -11%                                                                             | 573 BOPD                             | Early Production commenced                      |                                                       58.24 | Early accelerated production commenced since end of December 2012.                                                                            |
| Venezuela | Project Carabobo - 1                                    | OIL - 3.5%                                                                           | 573 BOPD                             | Early Production commenced                      |                                                       58.24 | Early accelerated production commenced since end of December 2012.                                                                            |
| Venezuela | Project Carabobo - 1                                    | IOC- 3.5%                                                                            | 573 BOPD                             | Early Production commenced                      |                                                       58.24 | Early accelerated production commenced since end of December 2012.                                                                            |
| USA       | Niobrara Shale Asset ( date of Acquisition: 04/10/2012) | Carrizo (60% - Op) ; OIL (20%); IOCL (10%); Haimo- (10%)                             | 563 BOEPD                            | Producing Asset                                 |                                                      109.14 | Production onstream. Activity slowed down due to current crude price.                                                                         |

| Country    | Name of Project                                          | Participating companies along with P.I.            | Present Product- ion (OIL's share)   | If not Producing, Expected Date of Production   | Expenditure/ Investment $USD Million (Till 30 Sept 2015)   | Major Issues / Highlights / Problems, If Any (March 2015)                                                                 |
|------------|----------------------------------------------------------|----------------------------------------------------|--------------------------------------|-------------------------------------------------|------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
| Mozambique | Area Rovuma 1 Offshore (date of acquisition: 07/01/2014) | BREML: 10% (OVL: 60% &OIL:40%)                     | NIL                                  | Under Development                               | 1,078.39                                                   | Interest in the Asset acquired on 07/01/2014.                                                                             |
| Mozambique | Area Rovuma 1 Offshore (date of acquisition: 07/01/2014) | Anadarko: 26.5% (Op) BPRL: 10%                     | NIL                                  | Under Development                               | 1,078.39                                                   | Interest in the Asset acquired on 07/01/2014.                                                                             |
| Mozambique | Area Rovuma 1 Offshore (date of acquisition: 07/01/2014) | PTTEP: 8.5%                                        | NIL                                  | Under Development                               | 1,078.39                                                   | Interest in the Asset acquired on 07/01/2014.                                                                             |
| Mozambique | Area Rovuma 1 Offshore (date of acquisition: 07/01/2014) | Mitsui: 20%                                        | NIL                                  | Under Development                               | 1,078.39                                                   | Interest in the Asset acquired on 07/01/2014.                                                                             |
| Mozambique | Area Rovuma 1 Offshore (date of acquisition: 07/01/2014) | OVL: 10%                                           | NIL                                  | Under Development                               | 1,078.39                                                   | Interest in the Asset acquired on 07/01/2014.                                                                             |
| Mozambique | Area Rovuma 1 Offshore (date of acquisition: 07/01/2014) | ENH: 15%                                           | NIL                                  | Under Development                               | 1,078.39                                                   | Interest in the Asset acquired on 07/01/2014.                                                                             |
| Bangladesh | Block SS-04                                              | OVL: 45% (Op) OIL: 45% BAPEX: 10%                  | NIL                                  | Under Exploration                               | 0.79                                                       | Seismic acquisition to commence soon                                                                                      |
| Bangladesh | Block SS-09                                              | OVL: 45% (Op) OIL: 45% BAPEX: 10%                  | NIL                                  | Under Exploration                               | 0.65                                                       | Seismic acquisition to commence soon                                                                                      |
| Myanmar    | Block M-4                                                | OIL:60% (Op) Oilmax: 10% Mercator: 25% Oil Star:5% | NIL                                  | Under Exploration                               | 0.11                                                       | PSC signed on 04.12.2014 in Nay Pyi Taw, Myanmar. Preparations are ongoing to undertakeMWP                                |
| Myanmar    | Block-YEB                                                | OIL:60% (Op) Oilmax: 10% Mercator: 25% Oil Star:5% | NIL                                  | Under Exploration                               | 0.11                                                       | PSC signed on 04.12.2014 in Nay Pyi Taw, Myanmar. Preparations are ongoing to undertakeMWP                                |
| Russia     | License 61                                               | OIL: 50% Petroneft: 50% (Jt Operators)             | 1250 BOPD                            | Producing Asset                                 | 76.56                                                      | Production onstream. 1000 Line Km of 2D seismic survey carried out. Processing and interpretation data is under progress. |

## IV. Bharat Petroleum Corporation limited

Bharat  PetroResources  Ltd.(BPRL),  a  100%  subsidiary  of  Bharat  Petroleum  Corporation Ltd has participating Interest in 10 block in overseas.  Over the past few years, BPRL consortium has had oil/gas discoveries in Mozambique, Brazil, Indonesia and Australia.  The details are given below:

## Mozambique

BPRL farmed into the Offshore Area 1 block of the Rovuma Basin, Mozambique, with a participating Interest (PI) of 10% in 2008.  In the last three years, the drilling of the prospects in Golfinho, Atum, Orca and Tubarao-Tigre have led to discoveries of Natural Gas.  These discoveries along with the earlier discoveries total to 75+ Trillion cubic feet of natural gas resources that have been discovered in the block till date.  The partnership in the block is moving ahead to monetize the gas by setting up a 2 train (each train of 6 MMTPA) on shore LNG Plant in Mozambique, which targets delivery of the first LNG cargo in 2020.

## Brazil

IBV Brasil petroleo Ltda(IBV Brasil) incorporated in Brazil; a 50-50 Joint venture company between foreign subsidiaries of BPRL  and  Videocon Industries Limited, presently holds participating interest(PI) in 6 deep water offshore exploration blocks spread over three concessions. Details of blocks are given below.  All the blocks are in various stages of exploration/appraisal and no production has commenced from any of the blocks.

Till date, seven major hydrocarbon discoveries have been made in the above blocks.  Six discoveries  have  been  made  in  Sergipe  Alagoas  basin  (BM-SEAL-11)  and  one  discovery  in Campos Basin.  Appraisal Plans for these discoveries have since been approved by the regulator. ANP.    During  the  past  three  years,  5  discoveries  of  oil/gas  have  been  made  in  BM-SEAL-11 concession.

IBV Brasil  has  already  invested  to  the  tune  of  USD  1400  million,  with  commitments  in excess of USD 2000 million towards exploration and appraisal activities in Brazil.

IBV's Block Details

|   S.No. | Concession                                    |   No. of Blocks | Partners with %PI                           | Operator   |
|---------|-----------------------------------------------|-----------------|---------------------------------------------|------------|
|       1 | Sergipe-Alagoas Basin: BM- SEAL-11 Concession |               3 | Petrobras-60%, IBV-40%                      | Petrobras  |
|       2 | Campos Basin: BM-C-30 concession              |               1 | Anadarko-30%, IBV-25% BP-25%, Maersk-20%    | Anadarko   |
|       3 | Potiguar Basin: BM-POT-16 Concession          |               2 | Petrobras-30%, Petrogal-20% IBV-20%, BP-30% | Petrobras  |

PI - Participating interest

BP - British Petroleum

## Indonesia:

BPRL farmed into the Nunukan Production Sharing Contract (PSC) in the Tarakan Basin, East Kalimanthan, Indonesia in September 2009, through its subsidiary BPRL Ventures Indonesia BV,  and  has  a  Participating  Interest  (PI)  of  12.5%.    Other  Joint  Venture  (JV)  partners  are  PT Pertamina  Hulu  Energi's  and  Videocon  Indonesia.    So  far,  JV  has  drilled  4  exploratory  and appraisal wells in the block.  While Badik 1 well drilled in June 2010 was declared a discovery, drilling of wells Badik 2, Badik 3 and West Badik During 2013-14 have confirmed the present of producible hydrocarbons.

As per the Operator, the Plan of Develop0ment (POD) reserves stand at 208.5 bcf of Gas and 1.05 million  barrels  of  Oil,  together  working  to  38.5  MMBOE.    The  JV  have  submitted  its POD to the regulator SKKMigas for approval.  The Final Investment Decision shall be taken after a detailed front End Engineering and Design (FEED) is conducted and Gas marketing agreements are in place.

## Australia

BPRL farmed into Block EP - 413, with Shale Gas potential, in 2010 acquiring a 27.803% Participating Interest.  The block is operated by Norwest Energy, and the other consortium partner in  this  Block  is  ARC  Energy  a  subsidiary  of  Australia  Worldwide  Exploration.    A  well Arrowsmith-2 has been drilled in 2011 and fractured hydraulically with Hydrocarbon shows in all five  zones.    The  permit  has  been  renewed  for  a  further  period  of  5  years  till  2018.    3D  seismic acquisition has been completed and processing of data is in progress.  This will enable the JV to decide on further well locations to appraise the block.

## Annexure referred to in reply to part  (e) of Lok Sabha Unstarred Question No.2429 to be answered on 14 th December, 2015 regarding investments abroad by companies

## STATEMENT OF OVERSEAS PROJECTS/ASSETS

| S.No.   | Country     | Name of Project              | Participating companies along with P.I.                                                               |
|---------|-------------|------------------------------|-------------------------------------------------------------------------------------------------------|
| 1.      | Vietnam     | Block 06.1(offshore)         | OVL 45%. TNK-35%(Operator); PetroVietnam 20%                                                          |
|         |             | Block 128(offshore)`         | OVL 100%                                                                                              |
| 2.      | Sudan       | GNPOC(Onland)                | OVL 25%; CNPC 40% Petronas 30%; Sudapet 5%. Jointly operated                                          |
| 3.      | South Sudan | GPOC(Onland)                 | OVL 25%; CNPC 40%; Petronas 30% Nilepet 5%(Jointly operated)                                          |
|         |             | SPOC(Block 5A), Onland       | OVL 24.125%; Petronas 67.875%; Nilpet 8%. Jointly operated                                            |
| 4.      | Russia      | Sakhalin-I(Offshore)         | OVL 20%; ENL 30%(Operator) Sodeco 30%; SMNG-S 11.5% RN Astra 8.5%                                     |
|         |             | Imperial Energy(Onland)      | OVL 100%                                                                                              |
| 5.      | Colombia    | MECL(Onland)                 | OVL 25-50%; SIPC 25-50%; Ecopetrol 50% Jointly operated                                               |
|         |             | Block RC # 8 (Offshore)      | OVL 40%(Operator), Ecopetrol-40%; Petrobras-20%                                                       |
|         |             | Block RC # 9 (Offshore)      | Ecopetrol-50%(Operator), OVL-50%                                                                      |
|         |             | Block RC # 10 (Offshore)     | OVL-50%(Operator), Ecopetrol)-50%                                                                     |
|         |             | CPO-5 (Onland)               | OVL-70%(Operator), Petrodorado-30%                                                                    |
|         |             | SSJN-7(Onland                | PSE 50%(Operator), OVL 50%                                                                            |
|         |             | Gua off-2(Offshore)          | OVL 100%                                                                                              |
|         |             | LLA-69 (onshore)             | OVL-50%, SIPC-50%                                                                                     |
| 6.      | Syria       | AFPC (Onland)                | SSPD(Operator) 62.5-66.67%, HES BV 33.33 TO 37.5%                                                     |
|         |             | Block 24 (Onland)            | OVL 60%, IPR 25% (Operator), TOM(15%)                                                                 |
| 7.      | Venezuela   | Sancristobal, PIVSA (Onland) | OVL 40%, PDVSA 60% Jointly operated                                                                   |
|         |             | Carabobo Project-1(Onland)   | PdVSA-60%; Repsol-11% Petronas- 11%; OVL-11% OIL-3.5% IOC-3.5% Jointly operated                       |
| 8.      | Brazil      | BC-10 (offshore)             | OVL 27%; Shell 50% (Operator) & Petrobras 35%                                                         |
|         |             | BM-SEAL-4(Offshore)          | Petrobras-75%(Operator), OVL-25%                                                                      |
|         |             | Espirito Santo/Brasil        | Petrobras-40-70%, IBV Brasil*-30%, Anadarko-0-30%                                                     |
|         |             | Campos/Brasil                | Anadarko-30%, IBV Brasil*-25%, BP- 25%, Maersk-20%                                                    |
|         |             | Sergipe/Brasil               | Petrobras-60%, IBV Brasil*-40%                                                                        |
|         |             | Potiguar/Brasil              | Petrobras-30%, BP-30%, IBV Brasil* - 20%, Petrogal-20%                                                |
| 9.      | Azerbaijan  | ACG                          | OVL-2.7213%; BP:-36%(Op) SOCAR- 12%, Chevron-11% INPEX-11%, Exxon-8%, Stat Oil-8%, TPAO-7%, ITOCHU-4% |

|   10. | Myanmar     | Block A-1(offshore)                      | OVL 17%, GAIL 8.5%, Daewoo 51%(Operator), Kogas 8.5%, MOGE 15%                                                                                                 |
|-------|-------------|------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    10 | Myanmar     | Block-A3(offshore                        | OVL 17%, GAIL 8.5%, Daewoo 51%(Operator), Kogas 8.5%, MOGE 15%                                                                                                 |
|    11 | Iran        | Farsi Offshore                           | OVL 40%(Operator), IOC-40%, OIL 20%                                                                                                                            |
|    12 | Mozambique  | Rovuma Area-1(Offshore)                  | OVL 6%, OIL 4%, Anadarko 36.5%, PTTEP 8.5%, BPCL 10%, ENH 15%, MITSUI 20% (additional acquisition of 10% share of Anadarko by OVL is also under finalization). |
|    13 | Libya       | Block 43 Contract Area(Offshore)         | OVL 100%                                                                                                                                                       |
|    13 | Libya       | Area 86                                  | OIL-50%(Operator); IOC-50%                                                                                                                                     |
|    13 | Libya       | Area 102/4                               | OIL-50%(Operator); IOC-50%                                                                                                                                     |
|    13 | Libya       | Area 95 -96                              | Sonatrach-50%(Operator) OIL-25%; IOC-25%                                                                                                                       |
|    14 | Gabon       | Block Shakthi                            | OIL-45%(Operator); IOC-45%; Marvis Pte Ltd-10%                                                                                                                 |
|    15 | Iraq        | Block 8(onland)                          | OVL 100%                                                                                                                                                       |
|    16 | Cuba        | Blocks 34 &35 (offshore)                 | OVL 100%                                                                                                                                                       |
|    17 | Nigeria     | Block 285 {Block 279,297 (relinquished)} | OMEL(O):64.33% Total: 25.67% EMO: 10%                                                                                                                          |
|    18 | Kazakhstan  | Satpayev                                 | *Suntera-50%; OIL-25%; IOC-25% OVL-25%, Kazmunaygaz-75% (Operator)                                                                                             |
|    19 | East Timor  | JPDA-06-103                              | Oilex(10%), Japan Energy(15%), Videocon(20%), GSPC (20%), BPRJPDA (20%), Pan Pacific Petroleum (15%)                                                           |
|    20 | Timor-Leste | Block-K                                  | REP DMCC-75%(Operator) OIL-12.5% IOC-12.5%                                                                                                                     |
|    21 | Australia   | EP 413                                   | Norwest Energy NL(27.945%), BPRL(27.803%); ARC Energy Limited(44.252%)                                                                                         |
|    22 | Indonesia   | T/L1 &T/18P Nunukan                      | HPCLs PI 11.25% &9.75% BPRL Venture Indonesia BV(12.5%), Pertamina(35%); MEDCO(40%); Videocon(12.5%)                                                           |
|    23 | USA         | Niobrara Shale JV Asset                  | Carrizo Oil & Gas Inc., USA(60%) OIL India (USA) Inc. (20%) IOCL (USA) Incx.(10%) Haimo Oil &Gas LLC(10%)                                                      |
|    23 | USA         | Eagle Ford Shale Gas Asset in Texas, USA | GAIL Global USA Inc (GGUI)-20%, Carrizo Oil &Gas (Operator)-80%                                                                                                |
|    24 | Yemen       | Block 82                                 | Medco Energy -45% (Operator) Kuwait Energy-25% OIL-15% IOC-15%                                                                                                 |
|    24 | Yemen       | Block 83                                 | Medco Energi-45%(Operator) Kuwait Energy-25% OIL-15% IOC-15%                                                                                                   |