NEW DELHI: Oil and Natural Gas Corporation (ONGC) will sign agreements with ENI on Wednesday to take 20-25 per cent stake in a Congo oil block and in return give the Italian firm 30-35 per cent stake in its Mahanadi basin block.

"The agreements will be signed in Mumbai on Wednesday,'' a company official said.

Two sets of agreements would be signed — one by ONGC Videsh Managing Director R. S. Butola for picking up a stake in the deepwater block Mer Tres Profonde Nord in the Republic of Congo where ENI is the operator with 60 per cent stake, while ExxonMobil has the remaining 40 per cent stake.

The other agreement will be signed by ONGC Director (exploration) D. K. Pandey for giving ENI 30-35 per cent stake in Mahanadi deepwater block MN-DWN-2002/1.

ENI Chairman Roberto Poli would sign the agreements on behalf of the Italian company.

ENI, which had found oil in an exploration well drilled in the Congo block, would carry ONGC's interest in the Mahanadi basin block for three wells costing $10-11 million each, he said.

The companies agreed to exchange information regarding opportunities in the exploration of deep water offshore fields in India and in other countries, with a view to exchanging equity interests in important upstream and midstream projects.

The official said ONGC and ENI would discuss sharing deep water drilling rigs.

ONGC is tying up with multinationals for technical support to unlock reserves in difficult areas like deep water blocks.

PTI

© Copyright 2000 - 2009 The Hindu