“Over the last few weeks the Indian media has reported that BPCL has entered
into agreements with Norwest Energy in respect of BPCL acquiring interests
in North Sea Blocks 48/1b and 2c and the Timor Sea AC/P32 permit,” Norwest said on Friday.
“Norwest Energy advises that it has not entered into any formal agreements
with BPCL at this stage, although it is able to confirm that negotiations are in
progress with BPCL in respect to both projects.
“Any agreement that is reached with BPCL will be subject to the acceptance of
other joint venture partners in the projects as well as any regulatory
authorities.”
Norwest said as soon as it had executed any formal agreements with BPCL, it would advise accordingly.
BPCL has floated a subsidiary called Bharat Petro Resources for upstream acquisitions and operations. The company has an authorised capital of $US220 million ($A280.4 million).
According to India’s Business Standard, BPCL will pay $12.2 million for the 25% stake in the two UK North Sea blocks and will bear 50% of drilling costs for exploration wells.
Norwest has said Blocks 48/1b and 2c are close to several gas-producing fields and their associated infrastructure makes even moderate gas reserves very commercial. Norwest believes there could be up to 500 billion cubic feet of gas in the blocks.
The two exploration blocks were offered by the UK Government to Norwest Energy and another Perth-based junior, Nido Petroleum, with 50% participating interest each.
UK-based, AIM-listed company EnCore took over Nido’s UK subsidiary and is now operator and 50% interest holder in the blocks.
In the Timor Sea, BPCL is moving to acquire 20% in the Coogee Resources-operated AC/P32 permit in the Ashmore-Cartier section of the Browse Basin from Norwest where the unsuccessful Magnolia well was completed at this time last year.
The Business Standard reported that BPCL will pay $1.42 million to fund the acquisition and processing of 3D seismic data.
In five years, it will have the option of paying 20% of the second well to be drilled in the block or of withdrawing from the block.
If BPCL decides to stay on, it can then opt to lift its stake in the block to 40% by taking on the burden of another 40% of the cost of the second well.
