OVL to buy ConocoPhillips field stake for $5 bn

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, OVL’s 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 ONGC’s 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

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