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INDIA BUSINESS WORLD - NOVEMBER 1st – NOVEMBER 15th 2008
ONGC VIDESH (OVL), BAGS COLUMBIA OIL BLOCK
PUBLIC sector oil explorer ONGC has bagged an oil block in Columbia. An equally-owned consortium of ONGC Videsh (OVL), the overseas arm of ONGC, has been awarded the block through an auction. An ONGC official confirmed the development. "We will sign the contract in coming weeks," he said. The other member of the consortium is a local oil and gas firm, Pacific Stratus.
It is learnt the consortium will invest $23 million in the first phase of exploration. The 550-km long block has a total area of 270,702 hectares and is adjacent to the La Creciente gas field. The OVL consortium will explore the block which will remain property of the Colombian government. A source in the know of the development said the Latin American country managed to found takers for 22 blocks after it put 43 blocks on auction. A total of 39 companies had participated in the auction for blocks in five geological basins, namely Llanos Orientales (17), Sinu San Jacinto (10), Cesar Rancheria (6), Cordillera Oriental (6) and Guajira (4). Reliance Industries is learnt to have failed to qualify for the bid. When contacted, a Reliance Industries spokesperson declined to comment.
Colombia is Latin America's fifth largest oil exporter. The country may become a net importer in 2016 if domestic consumption grows at the current rate and there is no significant new discovery, according to estimates by its government. To avoid this, Colombia has lured companies to invest in exploration. Its oil companies produced 612,000 barrels of oil per day in the first nine months of this year.
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