OMEL is a joint venture between Mittal Investments Sarl and ONGC Videsh Ltd (OVL).
One of the blocks grabbed by OMEL was the surrendered portion of the OPL 246, which was a subject of legal battle between the former Defense Minister, General Theophilus Danjuma and the federal government, according to an unnamed source.
He explained that notwithstanding the holdup in the release of the oil block because of the court case, the company still showed its dedication on the different downstream projects and had gone ahead to look at the likelihood of constructing a railway line and getting government’s commitment on the Greenfield refinery where it will be cited.
However, Sudhir Maheshwari, managing director of Mittal Investments said that OMEL has received the NNPC’s nod for the planned refinery project in Nigeria.
“The steering committee and the working committee of NNPC has approved the refinery as OMEL’s preferred downstream commitment,” Maheshwari said.
He confirmed that OMEL had in 2005 was awarded rights to explore in OPL-279 and OPL-285 after committing to spend $6 billion in the core sector of Nigeria. The company, he said paid a signature bonus of $50 million for OPL-285 and $75 million for OPL-279.
“OMEL is in constant discussion with NNPC regarding its downstream commitment. It has carried out a pre-feasibility study for a grass root refinery by engaging a reputed international consultant,” he said.
He also disclosed that the corporation has carried out due diligence and visited two refineries organized by OMEL, adding, “OMEL is keen to carry out the downstream obligation in earnest. Unilaterally, OMEL cannot move forward for implementaton of the project without the support of NNPC through its Steering Committee.”
