Videocon sets up SPV for petroleum block

MUMBAI: Videocon Industries Ltd has set up special purpose vehicle Global Energy Inc to explore, develop and exploit the Joint Petroleum Development Area 06-103.

The production sharing contract for the block located in the Timor Sea between Australia and Timor-Leste was allotted to a consortium comprising Videocon.

Participating interest of Global Energy in the JPDA 06-103 block is 25%.

JPDA is within the Bonaparte Basin with estimated 23 Tcf of undiscovered EUR gas reserves. Besides gas, there could be substantial condensate recovery, the company said in a notice to the BSE.

In the 06-103 contract, Leads 103-A and 103-C have been identified with recoverable unrisked potential of 260 million barrels of oil or 1300 BCF gas and 130 million barrels of oil or 571 BCF gas respectively.

A contract for 1,657 sq km of 3-D data acquisition has been awarded at an estimated cost of $18.6 million, and 1055 sq km of reprocessed 3-D data to the north of the block has already been acquired from Fugro.

Drilling is expected to start in 2008. The company's share in the current work programme is $18.9 million.

Videocon shares were 3.35% higher at Rs 379.95 on the NSE.