Norwegian “seismic-for-field-stakes” oilfield equity player Rocksource has announced a breakthrough deal to partner with Indian state income earner ONGC on a vast stretch of exploration acreage said to hold 2.9 billion barrels of oil and gas.

Asking for its 10 percent, Rocksource — which boasts “pinprick” electromagnetic survey equipment — will join operator ONGC, Oil India and Brazil’s Petrobras in the prolific Cauvery Basin’s Block CY-DWN-2001/1. The 12,400-square-kilometre block is as big as 30 Norwegian offshore blocks.

Rocksource will take part in drilling three exploration wells in the basin, and the company has said the main target is a 1.6 billion bbl prospect. The first well is underway and due by October.

Rocksource`s share of a first exploration phase is $20 million, although a peculiar royalty has been tacked on. In the event of success, “Rocksource will pay a $1 bonus to ONGC per produced barrel of oil, and fifty cents per produced barrel of oil equivalent gas, a statement said.

Rocksource chair Dag Dvergsten called the deal a “milestone”, saying it doubled the company’s risked reserves to 280 MMboe “the bulk of which will be tested in the near future.”

Upon approval by Indian officials, field stakes are thus: ONGC (45 percent), Oil India (20 percent), Petrobras (25 percent) and Rocksource (10 percent).

Tags: Oil India Limited, ONGC, Petrobras, Rocksource ASA