Mumbai: Videocon Industries has raised estimates of potential reserves at its 25 per cent-owned oil block, No 56 on the eastern flank of the Central Salt Producing Oil Field in Oman, to be in excess of 4 billion barrels.

A consortium comprising Videocon, Oilex Australia, GAIL, HPCL and BPCL holds the exploration and production rights to block No. 56 in Oman.

Videocon, GAIL India and oilfield operator Oilex Australia have 25 per cent participating interest each while HPCL and BPCL hold 12.5 per cent stake each, Videocon Industries informed the Bombay Stock Exchange (BSE) in a statement.

The oil block, on the eastern flank of the Central Salt Producing Oil Field in Oman, produces approximately 700,000 barrels of oil per day and has potential reserves in excess of four billion barrels, as per the estimates of UK research firm Fugro Robertson, Videocon said.

The consortium, which has signed a production sharing contract, will start exploration in 11 wells in the first pahse and add 15 wells in the second phase of exploration.

The consortium has identified 3 drilling locations in the block, covering 308 sq km, where 3-D mapping has estimated oil in-place of 250 million barrels.

The consortium is also seeking to reprocess existing data, acquire 1,000 km of 2D seismic starting July 2007 and drill around 3 wells in the third quarter this year, Videocon said in the release.

Various drilling related well information has been obtained from a number of PDO drilled wells adjacent to Block 56 to assist the operator in well planning and design.

Videocon''s share is the work programme is $24.6 million and the company has already spent $4,05,500 till date, the release added.