In a statement the Oil and Natural Gas Corp (ONGC) unit said, “As per the agreement, OVL will acquire a 55% interest in the Block WA 306 P, located in the North West Shelf, Offshore Australia. The other partner in the block is Magellan Petroleum (WA) Pty Ltd. The acquisition will become final pending approval by the Australian Government.”

“This acquisition marks OVL’s first foray into the Australian oil and gas industry. The block, spread over an area of 4,600 sq. km., contains a cluster of drilling prospects in Barcoo Sub-basin. With this acquisition, the company has, however, for the first time, started extending its area of operation and influence in the hitherto sparsely explored regions of the Browse Basin,” it added.

According to OVL Chairman Subir Raha, “The stake in block WA 306 P is our first acquisition in Australia and we believe that this opening should pave way for OVL’s participation in many other opportunities in the Australian hydrocarbon sector.”

“The block has good potential and we expect to spud the first well in the coming few weeks,” he added without elaborating further.