• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Richa Mishra

Seeks foreign expertise in exploration areas, hydrocarbon production

New Delhi , Dec. 27

Oil and Natural Gas Corporation (ONGC), which is looking for better technological expertise to increase output from oil and gas fields owned by it as well as acquiring more assets abroad, is exploring the option of asset swap. This in effect would mean that ONGC would offer participating interest to foreign companies in its assets held here in exchange of the overseas players offering shares to the Indian national oil company in their assets abroad.

To begin with, ONGC is negotiating with Italian company ENI for a possible asset swap. The deal is expected to be firmed up by early next year, wherein ONGC's overseas arm, ONGC Videsh Ltd (OVL), will get a participating interest in ENI's block in Cuba in exchange for a share in ONGC's block in Mahanadi basin, off the East Coast.

"Negotiations are going on with ENI. The package — percentage of share, cost involved — is yet to be worked out," Mr D.K. Pande, Director (Exploration), ONGC, told Business Line. The percentage of participating interest, which ONGC is likely to give to ENI, would ultimately depend on what the company is offered. Mr Pande said, "We are open to exploring such opportunities if they add value, have technology for deepwater exploration, and are ready to share our risks. It would also depend on whether the foreign companies can provide us some percentage in properties of our choice."

ONGC is also seeking ways to bring foreign expertise into exploration areas that it holds in India, and where new technology is needed for production of hydrocarbons.

The Mahanadi basin block that ONGC is offering to ENI was acquired by it under the New Exploration Licensing Policy (NELP) rounds. The State-owned company has a number of blocks in the Mahanadi basin. There are eight blocks under NELP — seven in offshore and one onshore.

As per reports, ONGC is hopeful of making a breakthrough in the Mahanadi basin. The block where drilling is going on is MN-OSN-2000/2. ONGC, which is the operator, has a 40 per cent share in equity in the block which comes under NELP-II. Other partners are GAIL (India), Indian Oil Corporation Ltd (IndianOil) and Oil India, each with a stake of 20 per cent.

More Stories on : Petroleum | Outlook | Technology | Oil & Natural Gas Corporation Ltd

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

Stories in this Section
2006: Outsourcing turns mainstream

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line