Performance review of ONGC Videsh Ltd & Imperial Energy Corp

Petroleum secretary to review OVL’s oil and gas fields
13 Jul 2010
India’s petroleum secretary S. Sundareshan will review on Wednesday the performance of the oil and gas fields of ONGC Videsh Ltd (OVL) the overseas arm of Oil and Natural Gas Corp. Ltd (ONGC), including that of Imperial Energy Corp. Plc. OVL completed the acquisition of Imperial for $2.1 billion (Rs9,807 crore) in 2009; the firm’s main asset are its Siberian fields with an acreage of around 16,800 sq. km.

Mint had reported on 17 June that Imperial is expected to see a peak output of 45,000 barrels per day (bpd) of oil in its Siberian fields, almost half the 80,000 bpd estimate that was the basis for the valuation and approval of the purchase. In response to a question about whether Imperial’s acquisition was a miscalculation, Sundareshan said on 9 July: “I am reviewing the performance of OVL’s producing assets in the course of the next week.

We can’t come to conclusion from what is envisaged as the peak production because we are nowhere near reaching the peak production. We are convinced that in the long run the project is extremely worthwhile and will be viable.” The current output from the Imperial fields, in the Tomsk region of Siberia, is in the range of 16,000-16,500 bpd. The fields have 946 million barrels of oil equivalent of proven and probable reserves as of December 2008, according to an audit by DeGolyer and MacNaughton. Courtesy: LIVEMINT
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