The Hindu Business Line : Oil India seeks technical partners for Mizoram block

New Delhi May 5 Oil India Ltd (OIL) is in talks with some companies to seek technical support for its exploration activities in the recently acquired block in Mizoram.

"We want to partner a company which has expertise in the kind of exploration activity we are looking for. Currently, we are at an advanced stage of dialogue with two-three such companies," a senior company official said.

The company, which was awarded eight blocks in the sixth round of New Exploration Licensing Policy (NELP), plans to begin the exploratory work soon.

The official told Business Line that OIL would be offering participatory interest to the selected partner.

"By participatory interest in the block we mean that no separate joint venture would be floated for the purpose," he added while declining to disclose the names of these companies.

Blocks awarded

Of the six onshore blocks awarded, the company has two blocks in Assam, one in Mizoram, two in Rajasthan, one in Krishna Godavari (KG) basin and two deepwater blocks in KG Basin off the Andhra Coast.

OIL has most of its assets in the north-eastern part of the country.

The company would require technical expertise to explore this region as it is a `thrust area', that is, a tough terrain to exploit, he explained.

Oil India has planed to incur a capital expenditure of around Rs 2,000 crore in the current financial year primarily on new exploration activities and acquisition of assets abroad.

The company currently has hydrocarbon reserves of 154 million tonnes (mt) of oil and oil equivalent.

OIL is targeting 3.5 mt of crude production in the current fiscal, and 3 billion cubic metre (BCM) of natural gas.

In 2006-07, the company produced 3.2 mt of crude oil and 2.4 BCM natural gas.

The country's crude oil production rose 5.6 per cent during 2006-07 to 33.98 mt compared with 32.19 mt last year, even as the consumption of petroleum products grew 5.9 per cent to 119.18 mt.