ONGC Videsh, the overseas arm of country’s flagship explorer ONGC, is mulling to spend nearly $500 million to increase crude oil output from the Mansarovar project in Colombia. However, this investment would be subject to extension of the Nare contract.
“From 2006 till 2015 year Mansarovar has invested around $1.5 billion. If the new strategic cooperation agreement of Nare Association is granted, the new investment would be close to $0.5 billion in the near future,” said Harvinderjit Singh, CEO of Mansarovar Energy Colombia, the joint venture between OVL and China’s Sinopec Petroleum International.
Mansarover has been the fifth largest oil producer in Colombia with production over 40,000 barrels of oil per day (bopd). In 2015, incremental average production in Nare Association if the new cooperation agreement is granted could be around 9,000 – 11,000 barrels per day through the implementation of new technologies, infill drilling and enhanced oil recovery (EOR) applications in Nare Fields.
During recent visit of Indian and Chinese diplomats to the field it was mentioned that Nare contract is expiring in November 2021 and any further major capex investment for increase in oil production from Nare fields would be related to the grant of extension beyond the expiry period.
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