ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corporation, is in talks with Royal Dutch/Shell to acquire half of the Anglo-Dutch giant's 50 per cent stake in an oilfield in Angola.
"OVL is talking to Shell Development Angola, a subsidiary of Royal Dutch/Shell, for acquiring stake in the British oil major BP-operated 200,000 barrels per day Greater Plutonio project (also known as Block 18) off Angola," industry sources said in New Delhi.
BP holds the remaining 50 per cent stake in the block which has six fields -- Plutonio, Cobalto, Paladio, Cromio, Galio and Platina. Block 18 is estimated to hold between 750 milion and one billion barrels of oil.
In addition, two recent exploration wells -- Cesio and Chumbo -- are estimated to hold 60 million barrels of oil.
Sources said Shell has opened data rooms in Houston and Rijswijk in the Netherlands for companies interested in picking up its stake in Angola. Besides OVL, Petronas of Malaysia too is reported to be interested in the oilfield.
Shell, which holds 15 per cent stake in deepsea block 34 and 10 per cent in block 21, has called for price bids by January 16, 2004, from interested companies. First oil from Block 18 is targeted for 2007.
OVL is also in talks with Gulf Petroleum Corporation and Al-Thani Group for acquiring their 11 per cent stake in Block 3 and 7 in Sudan.
Besides, the company is also talking to CNCP of China for a stake in its Block 6, which is estimated to hold one billion barrels of oil reserves.
Production from Block 3 and 7, which are estimated to hold oil reserves in excess of 3.5 billion barrels, is expected to begin in 2005 and reach 10 million tonnes per year.
The consortium of CNPC and Petronas of Malaysia will bring to production Blocks 3 and 7 in 2005 with an initial 170,000 barrels per day (8.5 million tonnes) on stream.
Block 6 in Western Kordofan operated by Chinese company CNPC comes on stream at 60,000 barrels a day (3 million tones annually), eventually rising to 180,000 b/d (9 million tonnes per annum).
OVL already has 25 per cent stake in Sudan's Greater Nile Petroleum Operating Co, which operates the Heglig and Unity fields of Block 1, 2 and 4 and produces 13 million tonnes crude annually. It also has stakes in Block 5A and 5B.
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