New Delhi, Nov. 13: ONGC Videsh Ltd. and its partner IPR Red Sea Inc. have made a second oil discovery in the North Ramadan Concession, Gulf of Suez, Egypt.

The discovery in well North Ramadan-2 (NR-2) is the second oil discovery in this block. The discovery well, NR-2, is located on a separate fault block north of IPR''s first oil discovery, NR-1A ST1, which produced approx. 3,000 BOPD (barrels of oil per day) and 1.5 MMSCFPD (million standard cubic feet per day) during the testing phase.

NR-2 was drilled to a total depth of 11,700 feet in the Lower Miocene Mheiherrat Formation. A total of 113 feet over a gross interval of
286 feet of interbedded sandstones, shales and limestones in the Asl Formation were perforated. Tests of the reservoir produced up to 800 BOPD (34°API gravity) and 0.50 MMSCFPD.

IPR''s infrastructure like the offshore platform and facilities in adjacent North July, will provide an option for expedited development of the NR-1A ST1 and NR-2 discoveries. Further analysis for development of the prospect is in progress.

North Ramadan Concession Agreement was signed for Petroleum Exploration and Exploitation in the Gulf of Suez, Egypt between the Arab Republic of Egypt & The Egyptian General Corporation as one part and consortium of ONGC Videsh Ltd. and IPR Red Sea Inc. as the other part in 2005 with the contract being effective from 8th August 2005. ONGC Videsh Ltd. and IPR Red Sea Inc. have 70% and
30% participating interest respectively in North Ramadan Concession.

The North Ramadan concession is 290 sq. km. in size and is surrounded by some of Egypt''s most prolific producing oil fields in the Gulf of Suez. ONGC Videsh and IPR are in the first phase of exploration in North Ramadan and have one remaining exploratory well to drill.

North Ramadan-3 (NR-3), is expected to be spud (begin drilling) in the first fortnight of November this year. The partnership has already acquired 205 sq. km. of 3D seismic data during Phase I and has identified several key prospects that will be pursued in the subsequent exploration phases.

The joint venture has successfully built a cost recovery pool in excess of 50 million dollars during Phase I. (ANI)