Mercator first forayed into the Oil & Gas business in 2004, when it chartered a Floating Storage and Offloading (FSO) Unit to BG Group which is now managed by the Shipping division. Since then, the oil & gas division has seen a steady growth with placing order for a Jack Up Rig in November 2007 with Keppel FELLS Ltd which was delivered in 2009 & was immediately contracted to one of private sector shipping company in India, undertaking of an EPCIC project and later operating of the Floating Production Unit (FPU) in Nigeria to the Sagar Samrat Conversion Project for ONGC to convert a Mobile Offshore Drilling Unit (MODU) into a Mobile Offshore Prodution Unit (MOPU). With the current portfolio including four Oil & Gas blocks in India & Mayanmar the Oil & Gas vertical has proved itself as a strategic component of Mercator’s philosophy of diversified growth.
The Group has opted out of the FPU services & Offshore Drilling segment as a strategic decision.
Oil & Gas Blocks
In December 2008, Mercator signed Production Sharing Contracts with the Government of India for exploration of Petroleum in two blocks under the Seventh New Exploration Licensing Policy round (NELP-VII). Mercator is the operator of these blocks. The “S-Type” blocks are situated onshore in the prolific Cambay Basin, Gujarat, India. Block CB-ONN-2005/3 (CB-3) is located in the Mehsana-Ahmedabad tectonic Block and covers an area of 48 Sq. Km. Block CB-ONN-2005/9 (CB-9) is located in the Broach- Jambushar tectonic Block and covers an area of 132.22 Sq. Km. The block is under advanced exploration stage and 2 wells have been drilled in this block and both wells have stuck oil.
Internationally, Mercator in consortium with Oil India Ltd. & others has signed Production Sharing Contracts for 2 offshore blocks – Block M-4 & Block – YEB. The 2 blocks together have a total area of over 30,000 km2. Both blocks are in the intial exploratory stage.