The Hindu Business Line : IOC, Oil India join hands with Algerian co for exploration in Libya

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IOC, Oil India join hands with Algerian co for exploration in Libya

M. Ramesh

Chennai, Jan. 21 Two petroleum PSUs, Indian Oil Corporation and Oil India Ltd, have joined hands with Sonatrach, the national oil company of Algeria, for prospecting for oil in a Libyan onshore block, it is learnt. The Algerian company will own 50 per cent interest, while the rest will be equally held by the two Indian companies, sources say.

It is also learnt that the two PSUs, which have agreed to co-operate in looking for oil and gas abroad, have teamed up with Reliance for exploring in a block in East Timor. The three Indian companies have a 50 per cent interest in the block, with Reliance owning half of it and the two PSUs equally owning the rest.

Exploration licence

Meanwhile, Oil India Ltd has received petroleum exploration licence from the Government of Andhra Pradesh for prospecting for hydrocarbons in the onshore block named KG-ONN-2004/1.

This, according to sources in the company, is significant because the block abuts the one that contains the prolific Ravva field.

OIL holds a 90 per cent interest in the block, with the Canadian Geoglobal holding the rest. Sources told Business Line that the block was previously with another company, which had done some seismic shooting. OIL is now re-processing the data and simultaneously collecting 3D data at the block. A joint study of both the blocks will tell OIL whether or not to put money in drilling in the block.

OIL proposes to invest Rs 4,575 crore in 2008-09 and 2009-10 in exploration and production. In 2006-07, the company produced 3.11 million tonnes of oil (and oil equivalent gas). The company has fixed for itself a target of 3.5 million tonnes for 2008-09.

Towards meeting the target, the company intends to press into service six rigs in the North East, in addition to the 10 that are operating there, sources in OIL said.

The company has also teamed up with British Gas Exploration and Power India Ltd to jointly bid for blocks under NELP-VII.

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