The company also plans to spend another $15 million on scouting for oil and gas in its three onshore blocks covering 30,000 square kilometersn Morondava basin of Madagascar.
The Vietnam block was awarded to Essar Exploration & Production Ltd, a subsidiary of Essar Oil, earlier in 2009 under a licensing round. The block covers around 5,925 square kilometers and is located at water depth of 60-70 meters, with early estimates indicating reserves of 2-3 trillion cubic feet natural gas.
Geological Surveys
According to the minimum work programme, we have to undertake geological and geophysical studies, acquisition, processing and interpretation of fresh 3d seismic and drill two exploration wells, the official said.
He said the exploration phase for the block is five years. in Australia, Essar exploration got the two blocks – nt/p77 and nt/p78 – last month.
We have a committed work programme of undertaking 3d seismic surveying and other studies along with drilling of one exploration well in each of the blocks at an estimated investment of around $65 million, the official said.
Essar Exploration plans to soon open drilling operations in the three onshore blocks in Madagascar, together estimated to hold in-place oil reserves of around 1 billion barrels.
Essar Oil has updated the data on the Madagascar blocks, and has completed acquisition of 12,000-line kilometers of aeromagnetic surveys.
