Overseas oil and gas projects lure Indian companies

JPL in pact with Georgia

Jindal Petroleum (JPL), a subsidiary of Jindal Steel & Power, has shown interest in exploring and producing oil and gas in four blocks in Georgia, for which, it signed production sharing contracts with the government of the Democratic Republic of Georgia. JPL will invest $150 million (approx Rs.720 crore) in phases and hold 85 per cent stake in three blocks, while Georgia-based Ensearch Petroleum will hold 15 per cent stake. JPL will be the 100 per cent stake holder in the fourth block.

OVL pans participation in Iraq oil, gas auctionl

ONGC Videsh (OVL) is considering bidding for 19 exploration blocks being offered by Iraq, under two bidding rounds. OVL is permitted to buy oil and gas assets overseas, as part of the Indian government's intent to attain energy security. It is the only Indian company qualified by the Iraqi government amongst 35 global firms to participate in this bid. Iraq opened the second round of bidding on 31 December 2008, offering 11 oil and gas exploration blocks, placing on auction eight oil and gas fields in the middle of last year. The oil and gas fields are distributed around Iraq and include blocks along Iraq's border with Iran and Kuwait. Iraq expects to sign the contracts for the latest round of auctions by end-2009. Results for the first round are due to be announced in May 2009.

ONGC mulls over exploration in Lanka

Oil and Natural Gas Corp (ONGC) is likely to participate in the exploration of hydrocarbon assets in a block in the Mannar basin, offered by the Sri Lankan government. Sri Lanka is now willing to renegotiate terms it had offered the company, to operate the block, and may even consider reducing the size of signing bonus, which was previously sought. ONGC Videsh, the overseas investment arm of the company, was offered Block 1 last year, on nomination basis if it paid a signature bonus of $10 million. OVL refused, finding the amount steep, as compared to the block's prospective. Sri Lanka plans to double the capacity of the state-run Sapusgakanda refinery to 100,000 barrels per day in four years, at an investment of $1.5 billion with the help of Iran. National Iranian Oil Company will give $1 billion loan while the remaining will be funded by the government

Vedanta, Nava Bharat keen to operate Maamba mine in Zambia

London-based Vedanta Resources Plc and Singapore's Nava Bharat have submitted their technical and financial proposals to operate the Maamba mine in Zambia, and to construct a 400 MW thermal power plant near the mine. The firms had qualified for the final bid in October 2008. Submission of technical and financial offers is the start of the final process. ZCCM Investments Holdings, which owns the mine, will select a preferred bidder soon.

Airtel launches its Sri Lankan operations

On 12 January 2009, Bharti Airtel launched its 3.5G network services in Sri Lanka, under its subsidiary Bharti Airtel Lanka and plans investing $200 million (approx Rs.960 crore) in the venture. The company has partnered with IBM to manage its IT infrastructure and application requirements, and selected iSmart Timex as its customer care partner. Also, in September 2007, Airtel had signed a $150 million (approx Rs.720 crore) deal with China's Huawei Technologies, to set up a mobile phone network in Sri Lanka, under which, Huawei has set up essential infrastructure like communication towers.

GAIL, RIL keen on Nigerian petrochem project

GAIL (India) along with Reliance Industries (RIL) is keen to set up a mega integrated petrochemical plant in Nigeria. Both companies will together invest $4 billion (approx Rs.19,200 crore) in building the plant with a production capacity of 1.5 to 2 million tpa, to manufacture feedstock, which will further be converted into value added products. Reliance and GAIL have also asked for allocation of a gas field jointly, for this polymer plant.