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Business $6bn Commitment Fee Forces Oil Company to Relinquish Oil Bloc in Nigeria


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LequteMan

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The Economic Times reports that ONGC-Mittal energy company has relinquished an oil bloc in #Nigeria over a $6bn commitment fee.

Extract:

ONGC-Mittal Energy Ltd, the famed joint venture of ONGC and steel czar Lakshmi Mittal, has relinquished an oil block in Nigeria after the African nation refused to relieve it of a $ 6 billion downstream investment commitment.

OMEL - a joint venture of ONGC Videsh and Mittal Investment Sarl - had in 2005 won right to explore for oil and gas in offshore OPL-279 and OPL-285 blocks.

It paid a signature bonus of $ 50 million for OPL-285 and $ 75 million for OPL-279.

Sources said the company had in 2012 relinquished deepsea block OPL-279 after prospective hydrocarbon zones did not offer any viable commercial development.

It offered to continue with the other block OPL-285 provided Nigeria relieved it of the $ 6 billion commitment.

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