has announced that a 50:50 joint venture company between
ONGC Nile Ganga BV, and Fulin Investments SARL, a subsidiary
of China National Petroleum Company International has
jointly entered into an agreement to acquire Petro-Canada''s
entire shares in four production sharing contracts (PSCs)
amounting to 33.33 per cent in Ash Sham; 37.5 per
cent in Dier EZ Zor; 37.5 per cent in Dier EZ Annex IV;
and the 36-per cent gas utilisation agreement of 36 producing
fields in Syria.
Nile Ganga BV is a fully owned subsidiary of ONGC Videsh
Ltd (OVL), the overseas armof ONGC. OVL is already working
in Syria in another exploration block, XXIV, in partnership
with IPRMEL and this acquisition would help the ONGC Group
to expand its portfolio in Syria
fields have been in production for over the last 15 years.
Petro-Canada holds its interest in these PSCs through
acquisition will be completed after the approval of the
Syrian government. Shell holds the remaining interests
in the four PSCs. A1-Furat Petroleum Company is the operator
for the asset, whose shares are held by Shell (31.25 per
cent), SPC(50 per cent) and Petro-Canada (18.75 per cent).
The purchase is retroactive from July 01, 2005.
fields under this asset are the major oil producers in
Syria and produced oil at an average rate of 187,350 barrels
per day during H1 2005. The remaining recoverable reserve
potential of the asset is estimated to be more than 300
million barrels of oil.
to Subir Raha, chairman, ONGC Group of companies, the
joint acquisition by ONGC and CNPC is a pace-setter for
both the companies. Though ONGC and CNPC have been working
together in the Greater Nile oil project in Sudan, this
is the first time that
they have joined hands to acquire an oil asset together
and the acquisition opens a wholly new set of opportunities
for both companies to collaborate on the oil and gas value