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Tuesday, May 28, 2024

In FY25, Oil India will restart the halted Libya block

<p>According to an official source who spoke to FE, state-owned Oil India Ltd plans to carry out its activities in Libya’s block Area 95/96 in the next fiscal year. Due to the civil instability in the African nation, the corporation had put a force majeure clause on its activities and has ceased them since May 2014. But now that things are getting better, Oil India hopes to shortly resume operations in the block.</p>
<p><img decoding=”async” class=”alignnone wp-image-432742″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-in-fy25-oil-india-will-restart-the-halted-libya-block-oil-11zon-750×422.jpg” alt=”theindiaprint.com in fy25 oil india will restart the halted libya block oil 11zon” width=”1077″ height=”606″ title=”In FY25, Oil India will restart the halted Libya block 12″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-in-fy25-oil-india-will-restart-the-halted-libya-block-oil-11zon-750×422.jpg 750w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-in-fy25-oil-india-will-restart-the-halted-libya-block-oil-11zon-768×432.jpg 768w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-in-fy25-oil-india-will-restart-the-halted-libya-block-oil-11zon-390×220.jpg 390w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-in-fy25-oil-india-will-restart-the-halted-libya-block-oil-11zon-150×84.jpg 150w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-in-fy25-oil-india-will-restart-the-halted-libya-block-oil-11zon.jpg 1024w” sizes=”(max-width: 1077px) 100vw, 1077px” /></p>
<p>The block’s participation interests (PIs) are divided between the corporation and Indian Oil Corp at 25% and SIPEX (Sonatrach International Production and Exploration) at 50%. Additionally, SIPEX is the owner and operator of Libya’s Area 95/96 block.</p>
<p>The force majeure was declared after the OIL-IOCL partnership finished drilling five of the eight wells that were promised under the minimum work plan (MWP). Five wells that were drilled all found hydrocarbons.</p>
<p>Five or six wells have already been drilled in Libya. There have been finds of gas and oil in each well. However, all of these issues (force majeure) developed afterwards, the insider said.</p>
<p>In order to fulfill its MWP pledge, the business now hopes to drill the two remaining exploratory wells and finish the one incomplete well.</p>
<p>An Interim Arrangement Agreement was struck by the consortium to extend the block until May 2018. The length of the Exploration and Production Sharing Agreement (EPSA) was further extended by a subsequent modification to the same agreement, as a result of the parties—NOC, Libya, SIPEX (Operator), and the OIL-IOCL consortium—continuing to be under a state of force majeure.</p>
<p>Throughout the duration of the force majeure, the Exploration & Production Sharing Agreement shall be enforceable. Due to Libya’s unfavorable law and order situation, the block has been placed under force majeure.</p>
<p>In addition, Oil India is looking at blocks in Gabon and Bangladesh and anticipates starting drilling operations in the next two to three months, as the company’s finance director Harish Madhav previously informed FE.</p>
<p>Additionally, the corporation projects that in FY25, its yearly oil output would reach 4 million tonnes. For the last several years, Oil India’s yearly production growth rate has been rising by 4.5–5%.</p>

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