Indian Oil Corporation and Oil India have announced that both the companies are undertaking exploration operations in Libya for hydrocarbon discovery.
Both the PSUs are part of an Indian consortium undertaking these overseas exploration and have a participating interest of 25% each.
Exploration operations in Libya’s hydrocarbon province
According to the company filings, the exploration activities are being undertaken in the Block Area 95/96 located in Ghadmes Basin of south-western Libya, which is a well established hydrocarbon province.
The Indian consortium’s exploration programme includes 8 exploratory wells, of which 5 have already been drilled. The exploration block covers 6,600 sq. km and is operated by Sonatrach International Petroleum Exploration and Production Corporation.
As per the press release, previous drilling campaigns in this block resulted in multiple oil and gas discoveries.
“With the resumption of exploration activities, drilling of the 6th exploratory well has led to a fresh oil and gas discovery,” both the companies added. The National Oil Corporation of Libya has recognised the well as an additional hydrocarbon discovery in the block.
“The discovery further reinforces the hydrocarbon potential of the Area 95/96 Block,” the statement read.
Evaluation activities to be conducted in the block
Under the scope of work, the consortium has planned detailed appraisal and evaluation activities to assess the reservoir characteristics, and firm up resource estimates. This will also help evaluate the commercial potential of discovery, it added.
“This development represents an important milestone in IndianOil’s overseas upstream portfolio and aligns with the company’s strategy of strengthening its international exploration and production footprint, while leveraging partnerships to pursue selective, high-potential overseas opportunities,” IOC said in its filing.
IOC and Oil India share price
Indian Oil Corporation’s share price ended Monday’s trade at Rs 146.54 on NSE, up 2% from its previous close. Over the past one month the stock has delivered a return of more than 6%, and so far this year it has declined by over 11%.
Oil India’s stock ended today’s trade flat at Rs 476.20. Since the past month the stock has been trading flat. However so far this year the stock has climbed up by over 11%.