OIL qualifies for Libyan auction

The country's second-largest government-owned oil and gas exploration company Oil India has qualified as a non-operator in the latest round of oil blocks auction in Libya.

OIL and its international exploration partner Indian Oil Corporation were now in talks with 35 other oil companies that have qualified as operators, said OIL Chairman and Managing Director M R Pasrija.

OIL and IOC did not qualify as operators as both of them have no previous experience in offshore blocks. They are among 21 other companies qualified as non-operators.

"We cannot reveal the names of companies we are looking to partner in Libya. We are keeping our options open on both the partner and the number and area of blocks we may bid for," Pasrija said.

The consortium of OIL and IOC already has stakes in two blocks in Libya, Block 102-4 and Block 086 in the prospective Sirte Basin.

Oil and gas discoveries have been made in adjoining blocks in the basin.

"We will complete seismic surveys by December this year and begin drilling in our Libya blocks soon after," Pasrija said.

The consortium is also studying the possibility of offering an investment package for development of other infrastructure projects such as roads and refineries in Libya if it gets prospective blocks in Libya's latest auction.

"We have to see how attractive the blocks on offer are. We are certainly open to investing in other infrastructure projects in Libya," Pasrija said.

OIL currently has stakes in seven blocks overseas in Gabon, Nigeria and Yemen. In Nigeria, it has stake in the Farsi block in which oil and gas has been discovered.

The block, in which ONGC Videsh also has a stake, is being studied to establish the commercial viability of the discovery.

OIL has also been awarded two blocks in Yemen, the contracts for which are yet to be signed.

It has also earmarked Rs 10,300 crore for investment in exploration and production projects in India.