Business Daily from THE HINDU group of publications
Wednesday, May 23, 2007
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Business Daily from THE HINDU group of publications Wednesday, May 23, 2007 ePaper |
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Corporate
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Mergers & Acquisitions Industry & Economy - Petroleum
Our Bureau
New Delhi May 22 ONGC Videsh Ltd (OVL), the overseas investment arm of Oil and Natural Gas Corporation, is eyeing stake in the producing oil field of Kyurobdag in Azerbaijan. According to a company official, if OVL bids and is successful, it would mark the company's entry into that country. Speaking to Business Line, the official said, "We are examining the prospects." OVL is expected to bid over $300 million to buy Caspian Energy Group's (CEG) stake in the oil field. CEG has 51 per cent stake in Shirvan Oil Operating Company that operates the Kyurovdag oil field in Azerbaijan, company sources said. State Oil Company of Azerbaijan Republic (SOCAR) holds the remaining 49 per cent stake. Shirvan is operating the Kyurovdag onshore oil field since June 1996.
Preferred bidder
Indications are that the OVL Managing Director, Mr R.S. Butola, had discussed his company's stake buy plan with the Azerbaijan officials during his visit to that country earlier this year. According to sources OVL has been granted the preferred bidder status and on being invited the company would be putting in its price bid. The field currently produces around 4,500 barrels oil per day. The Kyurobdag field was first developed by the Soviet Union in 1955 with 800 million barrels of recoverable oil reserves, of which 268 million has already been exhausted. The field is estimated to produce a minimum of 146 million barrels during 2007 and 2030. The production is projected to rise to 13,300 barrels per day in 2010 and thereafter start declining to reach 2,200 barrels per day in 2030. OVL currently has assets in 14 countries, including Myanmar, Vietnam, Russia, Egypt, Sudan and Australia but none in Central Asia. ONGC stocks after opening at Rs 931 closed at Rs 926.05 at BSE on Tuesday.
More Stories on : Mergers & Acquisitions | Petroleum | Oil & Natural Gas Corporation Ltd
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