ONGC-Mittal Energy acquires 2 gas blocks in Trinidad

ONGC Mittal Energy Ltd. (OMEL), a joint venture between ONGC Videsh Ltd. (OVL) and Mittal Investment Sarl (MIS), has won an exploration block with estimated gas reserves of 2 trillion cubic feet in Trinidad and Tobago. The firm has won this exploration block, by beating United Kingdom’s Centrica Plc.

OMEL, the 51:49 JV between Mittal Energy and the overseas investment arm of state-run ONGC, made a revised financial commitment of around $204 million to win the block. Mittal Investment is owned by industrialist L.N. Mittal, who also owns Arcelor Mittal, the world’s largest steel company.

Trinidad and Tobago had in January 2006 offered eight onshore and three shallow marine blocks for bidding. OMEL made an initial bid of about $175 million, which included signature bonus, and later revised it to $204 million.

According to an official statement, “There was a tie in the bids of OMEL and Centrica and OMEL was asked to submit a revised bid. The bid parameters were reviewed by OVL and OMEL in consultation with technical advisors and a revised bid for the block with an increase in the minimum financial exposure to OMEL from about $175 million to about $204 million was submitted. The Trinidad and Tobago Government has said that OMEL’s revised bid had been successful and it had invited the company to negotiate the production sharing contract (PSC) for the block.”

Trinidad and Tobago government has informed that OMEL's revised bid had been successful and it has invited the company to negotiate the Production Sharing Contract (PSC) for the block, it added.