Oman's minister of oil and gas, Mohammed bin Hamad bin Saif Al Romhi signed seven EPSAs worth around USD 340 million with various companies Thursday.

"The initial investment will be USD 30 million and we are planning to drill a minimum of eleven wells. We've estimated about 150 million to 160 million barrels of oil in the block and there is some potential for gas condensates," S Padmanabhan Director, Videocon Industries Ltd said.

The consortium comprise Videocon Industries (25 percent), Gas Authority of India (25 percent), Hindustan Petroleum Corp Ltd (12.5 percent) and Bharat Petroleum Corp Ltd (12.5 percent) and Australia's Oilex (25 percent) is the operator.

For Videocon with a 25 percent interest in India's largest private sector and producing 50,000 barrels per day at RAVVA in Andhra Pradesh, this is the first oil block abroad, though the company is into agreements for blocks in Australia.

The Indian consumer durables major has said it intends to pursue oil exploration proposals in Yemen and Libya too.

Work on Block 56, located onshore adjacent to producing fields operated by Petroleum Development Oman (PDO) in the South Oman Salt Basin, will commence in July, a statement by Videocon Industries said.

Videocon already has manufacturing facility for air conditioners in Oman and can provide immediate infrastructure required by operator Oilex to establish a joint venture in Oman to take up exploration work expeditiously," it said.