The company is one of the 35 qualified bidders for the fourth round of auction in December second week.
The auction is to develop 12 fields, totalling 72,500 square kilometres. This was announced by the National Oil Corporation (NOC) of Libya last week.
The other bidders are: Exxon Mobile, Gas de France, Pakistan Petroleum, BG Libya, ExxonMobil, Conoco and Shell.
"As per our practice, we will confirm and announce participation in exploration and production activities only when we sign the memorandum of understanding," said an OVL spokesperson.
OVL had signed an exploration and production sharing agreement with NOC for the contract area 43 in March this year. OVL entered Libya in June 2003 by acquiring 49 per cent participating interest in block NC-188 located in the Ghadames basin and NC-189 in the Sirte basin from Turkish Petroleum Overseas Company.
Later, it also won a block in the Ghadames basin. OVL also has an office in Tripoli, which opened in January 2006.
Sources said the Indian oil companies were also exploring the options of tying up with Ras Lanuf Oil and Gas Processing Company, the largest and oldest refiner in Libya, with a refining capacity of 220,000 barrels per day (bpd).
A team led by an additional secretary in the ministry of petroleum also held discussions with Dr Shokri Ghanem, NOC chairman, and the NOC management committee last week.
To enhance the energy security of the country, the Indian government is encouraging public sector oil companies to pursue equity opportunities in the oil and gas sector overseas. OVL has so far made an investment commitment of over $5 billion.
