OVL was the highest bidder for exploration Blocks 323 and 321 in the Gulf of Guinea but had to contend with 25 per cent due to pre-emption rights exercised by Korea National Petroleum Corporation.
Sources said OVL offered $310 million signature bonus to Nigeria and a promised investment of $525 million for Block 323 and $175 million signature bonus for Block 321. The two blocks are estimated to hold reserves of two billion barrels of oil.
"Though OVL was the highest bidder, the Korean firm exercised the special right to acquire 65 per cent of the blocks, matching winning bids for them from OVL," a source said.
OVL will now hold 25 per cent of the two blocks, while a Nigerian partner holds the remaining 10 per cent.
The Korean firm won the right of first refusal on the two blocks ahead of the bidding round in return for huge promised investments in Nigeria's neglected industrial infrastructure.
The two blocks - officially known as 321 and 323 are according to seismic data, the most promising oil and gas reserves among the 14 deepwater blocks Nigeria that were auctioned in Abuja, the national capital.
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