OVL Advised Not to Pursue Falkland Islands Blocks

India’s Ministry of External Affairs (MEA) has asked ONGC Videsh Limited (OVL) not to go ahead with its acquisition of hydrocarbon assets located in deep water in Falkland Islands, the Hindu reported.

ONGC Videsh has planned to bid for for two oil and gas blocks up for offer in the Falkland Islands.

The company had got a farm-in offer from Falkland Oil and Gas Limited (FOGL) through its advisor Stellar Energy for divestment of up to 35 per cent participating interest in two of its exploration acreages located in the deep water Falkland.

These blocks are estimated to hold nearly 7 bbl to 13 bbl of oil (for oil case) or 46-57 trillion cubic feet (tcf) for gas case.

Indian authorities have advised the company against pursuing interests in the region due to the territorial claims and disputes between Britain and Argentina, the Hindu said.

It was also felt that OVL was seeking assets in virtually other end of the world while its recently acquired Imperial Energy in Russia had turned out to be a not so good opportunity.