The Hindu Business Line : OVL, ONGC Mittal seek specific reserved blocks in Nigeria

THE Oil and Natural Gas Corporation (ONGC)-L.N. Mittal Group combine and ONGC Videsh Ltd (OVL) have sought specific exploration and production (E&P) blocks in Nigeria.

At a recent meeting with a high-level Nigerian delegation here, a proposal was made to consider OVL and ONGC Mittal Energy Ltd (a joint venture between ONGC and Mittal Group) for some reserved blocks in that country, an ONGC official told Business Line.

The Nigerian Government, normally, keeps these blocks for certain players, the official said. Along with Nigerian companies, some of these blocks have gone to South Korean outfits. According to the ONGC official, the Nigerian Government was also offered the facility to bring its local companies on board with OVL or OMEL as operators in the project. Besides, options are still open for OVL and OMEL to jointly participate in E&P activities in Nigeria, the official added. Nigeria has been seeking larger foreign participation in the energy sector, and has been talks with the Mittal Group for this purpose. Nigeria is looking for integrated infrastructure projects, including investments in export-oriented refineries, liquefied natural gas projects and railways.

And cashing on the opportunity, OMEL is seeking E&P blocks in that country, sources said. Earlier this week, at a meeting with the Nigerian delegation headed by its Petroleum Minister, Mr Edmund Dakoru, the Union Petroleum Minister, Mr Mani Shankar Aiyar, had underlined the fact that India's and Nigeria's vision in hydrocarbon was similar, that is, not to focus on one sector alone. It had to be an integration of the different stream of the petroleum sector, Mr Aiyar had said.

Nigeria is the sixth largest oil producer and the largest in Africa. India, which depends on imports for 76 per cent of its supplies, hopes to access 20 per cent of its oil from Nigeria. India imports over 10 million tonnes of crude from Nigeria, which has emerged as the second largest supplier after Saudi Arabia.

OVL had bid for two deepwater blocks in Nigeria, and had ended up getting a lower stake, despite being the top bidder at $485 million. When this matter was taken up, the Nigerian side suggested that India negotiate with South Korea for a higher stake, the sources said. A South Korean company won 65 per cent stake in the blocks with OVL getting only 25 per cent.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
OVL, ONGC Mittal seek specific reserved blocks in Nigeria

Bajaj Auto Q2 net up 61 pc on vehicle sales

Bank boards must ensure effective operational risk management: RBI

SEBI effect: Small-cap, penny stocks lose steam, fall 50 pc

Govt may allow contract labour in IT, select sectors — Excluded industries may be placed in a separate schedule

Refco's Indian arms told not to increase market exposure