OMEL to partner Total in Nigeria

NEW DELHI: ONGC Mittal Energy (OMEL) ��� a joint venture between ONGC and the LN Mittal group ��� is all set to take on board French oil major Total as a partner in its two Nigerian oil blocks. Total is likely to pick up close to 14% and 26% in highly prospective blocks, OPL-279 and OPL-285, respectively. ���The deal has almost been finalised,��� an OMEL official confirmed. It is expected to be a reciprocal arrangement, with Total offering equity stakes to OMEL in its oil and gas assets in other countries.

It is understood that a tie-up with Total will help the OMEL-led consortium to source equipment including drilling rigs. The tie-up is also significant as Total has expertise in undertaking exploration and production (E&P) activities in the region. The two are stated to be prize blocks. ���The production sharing contract (PSC) for both the blocks was executed on February 23, 2007, and OMEL had planned to bring in a partner by selling a participating interest to an international oil company,��� the official said. OMEL holds 60% participating interest in OPL-279 while the balance 40% is with the local Nigerian oil firm EMO. In block OPL-285, OMEL holds a 90% stake and EMO has a 10% participating interest.

Even after selling stake to Total, OMEL will remain the operator in the two blocks. The blocks were awarded to OMEL under a ���mini bid round��� in 2006 where commitment to build infrastructure had been one of the pre-qualification criteria. The consortium had committed to build a refinery, a railway line and a power plant in Nigeria to bag the deal.

OMEL, a joint venture company incorporated in Cyprus, has two major partners ��� ONGC Videsh and Mittal Investments Sarl (MIS). OVL and MIS hold 49.98% and 48.02% shares of OMEL, respectively, with 2% held by SBI Capital. OMEL also holds participating interest in the AFPC Syrian assets, Turkmenistan and Trinidad & Tobago.