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India's Videocon Petroleum signs US$46 mln loan

SINGAPORE: Videocon Petroleum Ltd has signed a US$46 million loan facility for the Ravva oil and gas development project in Madras, India, the company and lending banks Bank of America and Banque Paribas said on Tuesday.

Videocon Petroleum is part of the Videocon Group VDCI.BO, which is one of the leading manufacturers of consumer electronics products in India.

The agreement was signed on March 29, the joint statement said.

The Ravva project, estimated to cost US$243.7 million, represents Videocon's first move into the petroleum sector.

The project, located 400 km northwest of Madras, consists of seven unmanned offshore platforms, onshore processing and storage facilities and gas lift and water injection facilities, the statement said.

Command Petroleum CPH.AX unit Command Petroleum (India) Pty Ltd is operator of the Ravva field.

Earlier this month Command said it was preparing to complete the RC-1 development well in the Ravva Contract Area as an oil producer. Command said drill stem tests flowed 35.8 degree API oil at a maximum stabilised rate of 5,998 barrels per day, but added the flow rate was limited by the testing equipment.

India's Oil and Natural Gas Corporation Ltd ONGC.BO has a 40 percent stake in the find, Videocon 25 percent, Command 22.5 percent and Marubeni Corp 8002.T 12.5 percent through an affiliate.

The project is expected to be commissioned in late 1996 and is projected to produce 139 million barrels of oil equivalent over 14 years, the statement said.-Reuter