Essar to invest in Song Hong Basin in Vietnam

Essar Energy Holdings recently participated in the second international bidding round for open blocks in ‘Song Hong Basin', located on offshore northern Vietnam. The bid was submitted for one block on a standalone basis. The last date for submission of the bid was 21 September 2007, and the contract is likely to be awarded by end-October 2007.

Vietnam Oil & Gas Group (PetroVietnam), had launched the bidding round, inviting global participation in oil and gas exploration in seven offshore blocks (namely 105-110/04,111/04,114,115,116,120 and 121), in June 2007. The blocks are located at average water depths of 60-100 m covering 50 sq.km., at 50 to 100 km distance from the shoreline.

Ashapura forms mining JV with Oman Co.

Ashapura Minechem, through its 100 per cent subsidiary - Ashapura Minechem in the UAE, has established a JV company in Oman with Alawi Enterprises LLC. Ashapura will have a 60 per cent stake in the JV. The JV would handle mining, processing and value addition of minerals, and undertake mining and processing of industrial minerals like ground calcium carbonate, gypsum and others.

In the first phase, ground calcium carbonate and gypsum would be mined and processed. The second phase will focus on value added products like clinker, white cement and gypsum board. The first phase is scheduled for completion by mid-2008, and the second phase by 2010.

Global Steel to set up integrated steel plant in Phillippines

Pramod Mittal-promoted Global Steel Holdings (GSH) is setting up an integrated steel project in Southern Philippines, at a cost of $1.6 billion (Rs.6,400 crore). A formal agreement is likely to be signed with the Philippines government, by December 2007.

GSH proposes to convert its current 1.8 mln tpa hot steel strip mill into a 3.2 mln tpa integrated steel plant, which is to be implemented in two phases. Phase I will entail expanding the plant capacity, while associate works will be carried out in Phase II.

China Metallurgical Group bids for Essar Vietnam plant

China Metallurgical Group Corporation (MCC) has emerged as one of the bidders, to build Essar Steel's 2 mln tpa steel plant in Ba Ria-Vung Tau region of Southern Vietnam.

The steel plant will be implemented by a JV - Essar Vietnam Steel Corporation, wherein Essar will hold 65 per cent, Vietnam Steel Corporation (VSC) 20 per cent and Vietnam General Rubber 15 per cent.

India, Myanmar to sign agreement on Kaladan sea-port project

India and Myanmar are likely to sign a formal agreement for the Sitwee port situated on the Kaladan river in Myanmar. The port is expected to open way for India's landlocked north-eastern states including Assam, Manipur, Meghalya, Mizoram, Tripura, Sikkim, Nagaland and Arunachal Pradesh, to the international trading routes, through the Bay of Bengal.

OMEL acquires 30 per cent stake in Turkmenistan block

ONGC Mittal Energy, a JV between Oil & Natural Gas Corporation (ONGC) and Lakshmi Mittal, has acquired a 30 per cent stake in the Block 11-12, an offshore exploration block in the Caspian Sea, in Turkmenistan. Wintershall AG, the oil and gas arm of German chemical group BASF AG, owns 34 per cent in the area covering 5,663 sq.km and Maersk Oil holds the remaining 36 per. An exploratory well drilled by Maersk and Wintershall had indicated presence of hydrocarbons, and the new consortium is planning to drill another well in 2008.

Tata Petrodyne joins hands with IOC, OIL for Kyurovdag oil field

Tata Petrodyne, a wholly-owned subsidiary of Tata Sons, has joined the Indian Oil Corporation (IOC) and Oil India Limited (OIL) combine. The combine is presently bidding to acquire the 51 per cent stake which is held by Caspian Energy Group (CEG) in Shivran Oil Operating Co's Kyurovdag oil field, in Azerbaijan. The remaining 49 per cent stake is held by the State Oil Co. of Azerbaijan Republic (SOCAR).

ONGC-Mittal Energy (OMEL), the JV of ONGC Videsh and the Lakshmi N Mittal group, had in May 2007, placed a $300 million bid for the stake, but the deal was cancelled. The field currently produces 4,517 bpd and is expected to produce a minimum of 146 million bpd.