ONGC plans LatAm expansion

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New Delhi | Published: May 2, 2018 2:26:07 AM

Energy majors ONGC Videsh and Geo Park are forming a Colombia-headquartered joint business development group to create a long-term partnership in Latin America to achieve their expansion objectives.

ONGC, ONGC Videsh, Geo Park, LatAm, latin america, colombiaThe Indian oil major is also looking towards Ecuador for expanding its presence.

Energy majors ONGC Videsh and Geo Park are forming a Colombia-headquartered joint business development group to create a long-term partnership in Latin America to achieve their expansion objectives. The Indian oil major is also looking towards Ecuador for expanding its presence. Speaking to FE, Ravi Bangar, ambassador of India in Colombia and Ecuador, said, “Jointly, the companies intend to leverage the platforms, experience and strengths of each company and to create a long-term successful partnership in Latin America to achieve their expansion objectives.”

In February, ONGC Videsh and Geo Park Limited, a leading independent Latin American oil and gas explorer, operator and consolidator, formed a long-term Latin American acquisition partnership for large-scale projects. Geo Park also has operations and growth platforms in Colombia, Peru, Argentina, Brazil and Chile. Bangar said: “This joint venture is now progressing after ONGC found hydrocarbon reserves in its Mariposa-1 well in Colombia. ONGC Videsh is the operator of the block and holds 70% participating interest and Amerisur Resources of UK holds the remaining 30%.

The company is now drawing up plans for the development of the Mariposa-1 well that began a test production of 4,500 barrels per day. The success has also opened opportunity for further exploration in the block.” “It will jointly acquire, invest in, and create value from upstream oil and gas projects with the objective of building a large-scale, economically-profitable and risk-balanced portfolio of assets and operations across Latin America,” the Indian envoy added.

The well Mariposa-1 commenced drilling in March 2017, and was directionally drilled to a total depth of 11,556 feet. So far the ONGC has participating interest in a total of six blocks in Colombia, including a producing bloc whose current output is 35,000 barrels per day. Another company, Mansarovar Energy Colombia, a joint venture formed by the ONGC India and the Chinese oil company Sinopec, has interests in 11 fields in the Colombian Magdalena Medio basin, under partnership agreements with state oil company Ecopetrol.

On the company’s interest in Ecuador, the envoy drew attention to Ecuador’s oil minister Carlos Perez participation in the International Energy Forum (IEF) held in India. During his interaction with the media here, the oil minister of Ecuador had mentioned of ONGC’s interest in oil fields in his country.

Media reports have quoted ONGC Videsh managing director N K Verma as saying: “We had a good meeting with Ecuador and we will explore possibility of expanding our footprints in Ecuador. We are already present in Colombia.”

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