NEW DELHI: "The initiative to address the country's oil security needs is fructifying," Naik told members of the Parliamentary Consultative Committee attached to his ministry. ONGC Videsh Ltd (OVL) has acquired equity in the Sudanese project and the oil from it would reach Mangalore port. Focusing on the oil security scenario, Naik said: "(The) event assumes great significance in view of the country's heavy import dependence and the strategic importance of uninterrupted supplies of petroleum products." OVL, the overseas arm of Indian exploration major Oil and Natural Gas Corporation, completed March 12 the transaction to acquire 25 percent interest in Sudan's producing oil fields by paying $670 million. The payment was considerably less than the $750 million estimated price as OVL benefited from its share of sales revenue from the 12 million metric tones per annum oil field which started accruing to it from September 1, 2002, when the deal was finalized. Depending on imports for 70 percent of its requirement, India is keen to not only bring its share of 3 million tonnes of crude from the oil field but is also in talks with the other partners to let it have the remaining supplies on commercial terms. This will ensure a reliable 12 million tonnes per annum supply for India, officials said. OVL's other partners in the Sudan field are the Chinese National Petroleum Company (CNPC) with 40 percent stake, the Malaysian National Oil Company Petronas (30 percent) and the Sudan National Oil Company (five percent). Though OVL has taken equity in several exploration blocks in countries like Russia and Vietnam, where commercial production of gas has begun, this is the first case where India has decided to bring the equity share to the country. Naik informed the consultative committee members that efforts were on to boost exploration efforts within the country. In this direction, the fourth round of exploration blocks will be offered to potential bidders on Thursday. Under India's new exploration licensing policy (NELP), so far 70 blocks have been offered for exploration, with encouraging results in several of them. India is hopeful of good response from exploration companies to the new round which will be followed by month end with the second round of blocks for coal bed methane exploration, said Naik. Referring to the global crude oil scenario, Naik said with the U.S. having declared the end of war on Iraq, "further fall in international oil prices is expected. "This should bring more benefit to consumers as the fall in prices following the commencement of Iraq war led to the reduction in domestic prices of petrol and diesel on two occasions by one rupee each time on April 15 and April 27." One of the major demands of truckers who went on 10-day strike from April 14 was reduction in diesel prices in line with international crude prices. The petroleum ministry has asked the state-owned oil marketing companies to re-examine the periodicity of fuel price revision. The revision is currently being done on fortnightly basis.
Source: IANS