The company is expected to add average annual production of about 1 million metric tonnes (MMT) for a period of over 25 years with peak production of about 1.6MMT during the Phase 1 of the project. When Phase 2 and 3 are implemented, OVLs share will be hiked significantly.
ConocoPhillips expects proceeds of $5 billion, including the purchase price and expected working capital and closing adjustments, according to a separate statement issued by the Houston-based company.
ONGC, in its Perspective Plan 2030, envisaged that the oil and gas production of OVL would increase from the current level of 8.75 MMT in FY12 to 20 MMT by FY18 and 60 MMT by FY30.
"The acquisition, subject to relevant government, regulatory approvals, priority rights and consortium pre-emption rights, is expected to close in the first half of 2013, OVL said.
OVL, which recently made a joint bid with Oil India and IOC of about $5 billion for buying a stake in projects in Alberta, has bid for ConocoPhillips oil sands project in Canada. ConocoPhillips has extensive experience in the field of shale gas exploration and exploitation in the US and holds large acreages, while ONGCs endeavour in shale gas is at a nascent stage.
Oil and Natural Gas Corp (ONGC) is also likely to finalise a partnership for exploration of shale gas resources in India with ConocoPhillips next month. "We have given them all the data we have on shale gas acreage. Based on their analysis and experience, they will now hel us with their understanding," ONGC chairman and managing director Sudhir Vasudeva told reporters at the sidelines of the World Energy Policy Summit on Monday.
The overseas arm of ONGC currently maintains a combination of operational, discovered and exploration assets, and is working as an operator in 8 projects and as a joint operator in 7 projects.
OVL produces hydrocarbons from its 10 assets, namely Russia (Sakhalin-I and Imperial), Syria (Al-Furat Project), Vietnam (Block 06.1), Colombia (Mansarover Energy Colombia Limited), Sudan (GNPOC), South Sudan (GPOC and SPOC/Block 5A), Venezuela (San Cristobal) and Brazil (BC-10).