Andhra set to tie up with ONGC for oil exploration
YDERABAD: The Andhra Pradesh government is likely to firm up the proposal to join hands with state-owned ONGC to bid for oil blocks under the New Exploration and Licensing Policy (NELP).
A high level team from ONGC, the country’s biggest oil exploration company, is scheduled to hold deliberations with state government officials today (Tuesday) on the feasibility and the detailed plan for bidding, said Sam Bob, Principal Secretary, industries
He had earlier told ET that the state could pick up a 11% stake in the joint-venture and its investment could range between Rs 200 and 500 crore. It is also planning to partner with ONGC to explore oil blocks already alloted to the latter.
Besides ONGC, the state is also in advanced talks with UK based British Petroleum and US based Petro Tel Inc for a tie up. Petro Tel, which is exploring oil blocks in Indonesia and Oman, has communicated its interest in forging a tie up with the state. The company’s vice president (India business) Dr Shekar Jayant is scheduled to meet senior state government officials this month to firm up the proposal, said the official.
The centre is auctioning around 70 blocks in the VIII round of NELP, aiming to garner investments of over Rs 15,000 crore.
Power starved Andhra Pradesh is keen on bidding for blocks as uncertainty looms on gas supplies from billionaire industrialist Mukesh Ambani led Reliance Industries from the Krishna Godavari (KG) basin. RIL is locked in a legal wrangle with Anil Ambani led Reliance Natural Resources Limited (RNRL) led over gas-supplies.
Two state owned firms -- Andhra Pradesh Investment and Infrastructure Corporation (APIIC) and AP State Power Generation Corporation (AP Genco) – have formed a special purpose vehicle to bid for oil and gas blocks.
Posts
Chinese
French
German
Italian
Japanese
Korean
Russian
Spanish
