OVL likely to get stakes in Angola, Iran blocks

NEW DELHI: Oil & Natural Gas Corporation’s (ONGC) overseas arm, ONGC Videsh Ltd (OVL), may be able to get stakes in an Angolan and an Iranian block courtesy Norway’s Norsk Hydro.

Under an understanding reached by the two sides, OVL on its part has offered Norsk Hydro participation in two deepwater exploratory block in Cuba, he said.

OVL has 100% interest in Block 34 and 35 in Cuba while Norsk Hyrdro has 50% each participatory interest in the blocks in Angola and Iran. Brazil’s state-owned Petrobras is a partner in Block 34. Petrobras had in April 2006 entered into a tripartied agreement with OVL and Shell allowing the Indian company 15% equity in Block BC-10 in the Campos Basin in Brazil’s deepwaters.

“Norsk Hydro has agreed for participation of OVL in deepwater Block 34 in Angola, in which it has 50% participation interest,” minister of state for petroleum and natural gas Dinsha Patel told reporters today at the conclusion of a two-day meeting of Indo-Norway joint working group on hydrocarbon.

Patel said Norsk Hydro has offered OVL a part of its 50% stake in the onshore Aranan field in Iran that is in vicinity to a discovered oilfield. The Iranians hold the remaining stake through the state-owned National Iranian Oil Company. Iranians laws do not permit exploration without participation of state-owned company. OVL already has interest in the Farsi block there.