Oil India Plans to Gain Five Blocks in africa

Oil India Plans to Gain Five Blocks in Africa

11-13-2007

Oil India (OIL) is planning to pick up equity in five oil blocks in Africa to secure oil equity for India. The five include oil blocks in Libya and Sudan, two blocks in Nigeria (one discovered and one producing) and an exploratory block in Angola. The probability of getting the blocks in Libya and Sudan is high because they are not up for open bidding, but will be given through negotiations at government level.

Confirming the move, OIL chairman and managing director M S Pasrija said:”We are in talks with Sudan and Libya for two oil blocks. This is likely to happen by the end of the year.”OIL already has two oil blocks in Libya and one each in Sudan, Nigeria and Gabon. OIL director-exploration S K Patra said: “The block in Libya is highly prospective, however the discovery has not been established. We are planning to acquire another discovered asset in Nigeria in joint venture with a local company. We are also keen on Angola, which is offering exploratory blocks.” When asked if OIL will bid for these oil blocks alone, Mr Patra said, “We have understanding with Indian Oil Corporation (IOC) to bid jointly for overseas blocks, if they are not interested, we may bid with other Indian firms as partners.”

OIL along with IOC and Tata Group is also in race to acquire a majority stake in Caspian Energy Group LLP’s producing asset in Azerbaijan. The remaining 49% stake in Shivran Oil Operating Co is held by the state oil company of the Azerbaijan Republic. This field is believed to have reserves of 4.3 billion barrels, of which 800 million barrels are recoverable.

OIL is planning to raise money to boost its overseas exploration activities and is planning to hit the Indian capital market with its initial public offering (IPO) in February 2008. The company has got government approval to dilute 10% stake to public. The company will file draft red herring prospectus (DHRP) with Sebi later this month.