'Not prudent': Mittal pulling out project
PORT SPAIN
Trinidad & Tobago Express
Petroleumworldtt.com
04 10 09
The LN Mittal group has announced plans to pull out of a project it was developing with India's state-owned ONGC to explore for oil and gas off Trinidad's north coast.
The joint venture ONGC Mittal Energy Limited was awarded block NCMA-2 off Trinidad's north coast last year, and initial 3-D seismic exploration showed it to have potential.
But LN Mittal stated in a release last week, "We have carried out a thorough analysis of the Trinidad project in view of the impact the current economic situation is having on the oil and gas industry, and do not believe it is prudent to continue at this time".
A spokesman for the company said the project was in the appraisal stage and "nothing has been done yet on anything".
Energy Ministry officials were not available for comment on the decision.
Oil prices have fallen from a high of US$147 a barrel last year to about US$50 a barrel at present.
The award of block NCMA2 west of Tobago was approved by the ministry last year.
The block is about 1,000 square metres and was one of several that went out for tender.
ONGC is currently exploring for oil in Nigeria, Myanmar and Central Asia.
The LN Mittal group owns Acelor Mittal, the largest steel company in the world and its steel mill in Point Lisas sent home some 120 workers this week due to depressed prices for steel products.
Story by Louis B Homer, South Bureau
from Trinidad & Tobago
Express
Trinidad & Tobago Express
Friday, April 10th 2009
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