OVL shortlisted for Iraq & Angola oil fields development

ONGC Videsh (OVL) is one amongst 41 global oil corporations, shortlisted by the Iraq government to develop oil fields in the country. Some other companies identified are China's Sinopec and CNPC. The Iraq government has initiated this move, to increase domestic oil production to 4.5 million barrels per day (bpd) by 2013 from the current 2.5 million bpd, and be accounted for around 3 per cent of total world production. For this, it is entering into short and long-term contracts with global oil companies. So far, it has set up contracts with US-based ExxonMobil, Royal Dutch Shell, British Petroleum and France's Total. ONGC Videsh (OVL) has also been shortlisted to bid for deep-water blocks in Angola. The blocks - nine being offshore blocks and one onshore block, were put on offer for exploration, to global oil companies, and will be auctioned by September 2008. OVL also proposes to form a JV with Angolan national oil company, Sonangol, to hunt for oil and gas assets in the world.

NALCO to acquire stake in TALCO

National Aluminium Company (Nalco) has chosen to acquire 51 per cent in Tajik Aluminium Company (Talco), instead of it just being a supplier of alumina for the company. This move follows Talco showing interest in buying aluminium from the company without undergoing its global tendering process. Talco relies entirely on imports, to run its smelters. Nalco has approached the Tajikistan government with its proposal.

Talco operates the largest aluminium manufacturing plant in central Asia, with a production of 4,16,000 tpa of aluminium in 2006. It is one of Tajikistan's largest enterprises. In 2007- 08, Nalco produced 46,84,684 tpa of bauxite and 3,59,213 tpa of aluminium.

Essar Oil preferred bidder for oil & gas blocks in Australia

Essar Oil has emerged as the preferred bidder for developing two oil and gas blocks in Australia. The company will hold 100 per cent equity in these blocks. This achievement is part of the company's strategy to expand its refining capacity from 210,000 bpd to 1 mln bpd in the next three years. Part of its expansion will be fuelled by increasing capacity at its Vadinar refinery, which will increase overall refining capacity to 700,000 bpd.

To fund its expansion, Essar Oil will raise $9 billion, utilising around $6 billion in expanding the Vadinar refinery and the remaining amount in overseas activities. Last year, the company spent $75 million on exploration and production. At present, Essar owns only one oil producing block in Mehsana, Gujarat, generating 17,000 bpd of oil in 2007.

SpiceGas acquires BND Gas

SpiceGas, a fully-integrated company of SpiceEnergy Group, has announced acquiring majority stake in Surat-based BND Gas. The deal value has not been disclosed. Following its acquisition, SpiceGas proposes to rename BND Gas as SpiceGas Gujarat. SpiceGas will embark on a nationwide Rs.200 crore AutoLPG gas fuelling station project, beginning in Gujarat, and moving to Maharashtra and Madhya Pradesh, in initial periods. With further development, it will expand to Tamil Nadu, Kerala, and Karnataka. The full-service stations will offer end-to-end services including conversion kits, convenience stores and trained mechanics.

RIL inks pact with Peru company

Reliance Industries (RIL) has signed an agreement with Peru's Perupetro, to jointly explore oil and gas in the Andean country. Both firms are likely to bid in the Peruvian government's auction of 22 blocks, estimated to hold hydrocarbon potential. In early- 2008, Reliance acquired 90 per cent stake in an oil block in the Andean region of Puno in Peru, from Irish company Pan Andean Resources.

SKIL Infrastructure signs MoU with Oman government

SKIL Infrastructure has signed an MoU with the Oman government, to develop a multi-product SEZ in Sohar port. Investment is estimated at Rs.13,000 crore. SKIL will hold 49 per cent in the SEZ, while Sohar port and Rotterdam port will be the remaining shareholders. The SEZ is proposed over 11,000 acres of land and is expected to be launched by end-2008.

BPCL in JV for Kenya LPG bottling plant

Bharat Petroleum Corporation (BPCL) has entered into a 50:50 JV with Kenya Pipeline Co., to set up a LPG bottling plant at Nairobi in Kenya. Plant capacity has been proposed as LPG bottling 2,000 tpa of LPG. The gas will be sourced and brought to the plant from Mombassa in Kenya. Initial project investment estimated to be $15 million, will be funded through a 70:30 debt:equity ratio.

NTPC to bid for thermal plants in Oman

NTPC is planning to explore an investment option in Oman, with the Oman government deciding inprinciple to set up coal-based power plants in the upcoming industrial port city of Duqum. NTPC is currently in talks with Oman Power & Water Procurement Co (OPWPC), Omani Electricity Regulation Authority (OERA) and Public Authority for Electricity & Water (PAEW), and two prominent Omani private industrial houses - Zubair Corporation (TZC) and Omar Zawawi Establishment (OMZEST). The proposed plants will have generation capacity within the range of 1000-1200 MW. OPWPC is expected to award the contract through international competitive bidding process and tenders are expected to be invited before end-2008.

India's maiden entry into Nepal's power sector

Power Trading Corporation (PTC) and Australian company Snowy Mountain Corporation have entered into a PPA, for Asian Development Bankpromoted 750 MW West Seti Hydroelectric Power Project in Nepal. Shareholding pattern is determined as 10 per cent stake with a Nepalese party, 15 per cent with ADB, 25 per cent with Snowy Mountain Corporation, 15 per cent each with a Chinese company and IL&FS, while the rest with Nepal government. The Chinese firm has bagged the EPC contract.

The project is proposed entailing 187 x 4 units having an estimated generation capacity of around 3,251 mln units per year. A 135 km transmission line will stretch from project site up to the Indo- Nepal border. Another 100 km pipeline will be laid from to Atamanda, near Bareilly on the Indian side, in which PTC, IL&FS and Power Grid are likely to be stakeholders. Of the power produced, India will buy 90 per cent under the agreement's terms and conditions and Nepal will get 10 per cent as free power. ADB will take up financial approval of the project by August 2008, after which formal work will begin. In India, the likely beneficiaries of the project will be Uttar Pradesh, Haryana, Punjab and Delhi.

Falcon to do feasibility study for SA railway line

Falcon Resources will be preparing a feasibility study on a proposed construction of Trans- Kalahari electrified railway line, in South Africa. The line, a 1,600 km stretch will begin from Morepule Colliery in Central Botswana, stretch across new coal mines of Aranos in Namibia, and lead to an upcoming port at Shearwater Bay in Namibia. Exporters of dry bulk in much of the land-locked Central Southern Africa, will benefit with access to the main Gaborone-Harare railway. Electricity will be supplied to the railway line from a dedicated coal-fired power plant in South of Aranos, due to power supply problems in Namibia. The rail link will facilitate access to export markets for previously unexploited reserves. The port is proposed to handle coal, copper, iron ore, manganese and zinc, for exports.

HPCL to secure stake in Egyptian E&P blocks

Hindustan Petroleum Corporation (HPCL) is planning to secure 30 per cent equity participation in Egyptian E&P blocks, under Egypt-2008 Bid Round-I, for exploration. The bid has been floated by state oil company Ganoub El Wadi Holding Petroleum Co. (Ganope) of Egypt, for 12 exploration blocks in Red Sea, South Gulf of Suez and east and west Desert Basins. Existing geology and geophysics data and a model production sharing agreement (PSA) will be provided by Ganope on request, followed by payment of predetermined fees of $0.3 million, for the 12 blocks. The bid will close on 15 July 2008.

Tata Power takes stake in Bhutan power project

Tata Power Co. is partnering with Government of Bhutan, to develop the 114 MW hydel power project over river Dagachhu through Druk Green Power Corporation. Tata Power will take 26 per cent stake in the power project. The project will be executed by the SPV - Dagachhu Hydro Power Corporation Ltd. (DHPC). The company will offtake power for 25 years. Power will be delivered at the India-Bhutan border.