IOC and Oil India close to buying Gabon block

Vol 9, PW 23 (09 Mar 06) News in Brief

Indian Oil and Oil India are reported to be close to farming in to onland exploration block FT 2000 in Gabon.

PETROWATCH learns a formal agreement between seller Marvis Pte of Singapore and the Indian consortium is about two weeks away but that price continues to be an issue. IOC and Oil India feel the asking price is too much even though the block is estimated to hold between 150m to180m barrels of recoverable oil.

Marvis Pte and the government of Gabon will retain a minority participating interest after IOC and Oil India farm-in. FT 2000 measures 3761-sq km and holds a major fault closure and several small potential hydrocarbon-bearing structures.

The geology is very good, we hear. Several wells were drilled showing evidence of hydrocarbons, but the wells were not tested and the block has not been adequately covered with seismic.

A portion of the block is part of area relinquished by an earlier operator.