India vying for equity stake in Saudi Arabian gas field

Friday, 04 July 2003, 19:30 IST
Printer Print Email Email
NEW DELHI: India's exploration major Oil and Natural Gas Corporation's (ONGC's) overseas subsidiary ONGC Videsh Ltd (OVL) has started talks with Saudi Arabia for an equity stake in Saudi Arabia's South Ghawar gas fields. "We have been in talks with Saudi Aramco for the last two months for participation in the South Ghawar gas fields. It is still too premature to talk about it," an ONGC spokesperson told IANS Friday. ONGC has been successful in getting equity stake in several overseas oil and gas exploration fields including Russia, Sudan, Vietnam, Libya and the U.S. in a bid to secure assured hydrocarbon supplies given India's dependence on imports for 70 percent of its oil needs. India is hopeful of Saudi Arabia favourably considering its proposal in the light of its recent decision of calling off discussions with global majors ExxonMobil, Royal Dutch/Shell, BP and Phillips Petroleum for the development of a combined project on the South Ghawar field. For the South Ghawar field, ONGC has joined hands with state-owned refining and marketing major Indian Oil Corporation (IOC), which sources a major share of its crude supplies from Saudi Arabia, the country with the world's largest oil reserves. During a visit to Saudi Arabia in June for renewal of the annual contract for import of crude oil, IOC chairman and managing director M.S. Ramachandran had followed up the developments. "We are looking not only at participating in the exploration and development in South Ghawar but also in the huge associated projects for petrochemicals and power," Ramachandran told leading financial daily Business Standard.
Source: IANS
siliconindia