ONGC sizes up assets in Iraq
State-owned explorer ONGC Videsh Ltd (OVL) has submitted pre-qualification bids for 12 blocks in Iraq in line with the Centre’s strategy to strengthen the country’s energy security. The auction of the oil and gas blocks will take place early next year.
“We have submitted the pre-qualification bids to be considered for the fourth round of auction. The names of the successful firms will be announced in June and they will have to bid for the blocks in January,” company sources said. OVL is the overseas arm of ONGC.
“We will scout for joint venture partners after the pre-qualification round. We are quite optimistic of making to the next round as we have past experience in that country,” the sources said.
The blocks on offer are in the provinces of Babil, Basra, Dhi Qar, al Muthanna, Najaf, al Diwaniyah and Wasit in the south, Diyala and Nineveh in the north, and al Anbar in the west. The bidding will be for seven gas and five oil blocks.
This will be the fourth round of bidding for foreign companies; the earlier auctions were held in July and December 2009 and October last year.
At present, OVL is the sole licensee of Block 8, a large onland exploration region in the western desert of Iraq. It had secured the block in 2001. However,
the terms of the contract are being renegotiated by the Iraqi government following changes in their oil and gas laws. Iraq has proven oil reserves of 143.1 billion barrels and gas reserves of 129 trillion cubic metres.
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