Fri Sep 20 11:50:17 UTC 2024: ## Oil India to Start Oil Production in Gabon Block Next Year
New Delhi: State-run exploration and production company Oil India Ltd (OIL) is set to begin oil production from its Shakthi-II block in Gabon during the next fiscal year. The company, which holds a 50% stake in the block, along with Indian Oil Corp, will complete the construction of wells in the coming months.
According to sources, OIL will soon issue a tender for local vendors to complete the project. The company plans to drill all four planned wells by the end of FY25. While initial production was expected to start this year, delays caused by issues with local contractors have pushed the timeline back.
The Shakthi-II block has already witnessed successful oil discoveries in previous wells, including ‘Lassa-1’. Additional appraisal wells were drilled under the phase 1 of the new production sharing contract, while the consortium also carried out extensive seismic data acquisition and interpretation to assess prospects in the block.
The project has faced delays due to regulatory hurdles, its interior location, and the Covid-19 pandemic. However, its success holds significant importance for India, as it has been actively seeking to secure energy resources abroad.
This news comes as state-run firms face challenges in their overseas energy assets, particularly in the delayed LNG supplies from the Mozambique project. The Gabon project offers a glimmer of hope for India’s efforts to ensure energy security, especially given the ongoing Russia-Ukraine war and its impact on global energy markets.
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