Indian oil majors now aim for Norway
Sunday, 04 March 2007, 18:30 IST
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New Delhi: In the quest for energy security and to be relevant in the great hydrocarbons game, Indian exploration majors could be headed for Norway next. Oil ministry mandarins confirmed that Indian exploration majors have been asked to examine opportunities in the Scandinavian country. Norwegian offshore exploration involving North Sea, Norwegian Sea and Barents Sea was the scene of heightened interest in the bidding round of pre-defined areas in 2006. Now the 2007 edition is up for grabs and the Government of India's diplomatic and petroleum ministry officials are sensing an opportunity. "Our government wants to give the industry access to new prospective acreage," says Norwegian Minister for Petroleum and Energy Odd Roger Enoksen. In the last round, 48 exploration licences were given for 85 offshore blocks. Out of that, 33 companies that were awarded, as many as eight were new to the country. The 2007 version announced last week includes 13 new blocks and the deadline for the same is September 28, 2007. It is pertinent to mention that no Indian company has ever explored oil or gas in Norwegian offshore areas, but with both public and private sector now scouring the world for assets, there is great interest now. The top brass of two state-run oil majors, ONGC Videsh - the overseas exploration arm of Oil and Natural Gas Corp - and Oil India Ltd have been asked to study and participate in Norway's awards in pre-defined areas (APA). Late last month, the Norwegian cabinet cleared the APA 2006. There is large potential in proving new, smaller resources close to existing infrastructure in the mature areas of the North Sea, the Norwegian Sea and the Barents Sea, industry experts said. The Norwegian government wants to develop Barents Sea as a petroleum province and prioritise an expansion in this Sea, they added. It is believed that value creation is a central issue in the Norwegian oil and gas policy. Private sector Indian companies have evinced interest in bidding for these assets. This is a good example of the Indian government's calibrated plan to indulge in economic diplomacy to counter the overpowering presence of Chinese oil majors around the world. The great oil hunt has seen China's economic and military diplomacy best the Indians time and again in Africa and Central Asia. India and China have been jousting over oil and gas assets all across the globe, with India more often than not finishing second best. India has invested billions of dollars in acquiring oil and gas assets in diverse geographies like Russia (Sakhalin) to Sudan and Libya to Vietnam and even far away Ecuador, Venezuela and Cuba. But ONGC Videsh, India's oil acquiring arm has been wrong-footed by Chinese majors like CNOOC and Sinopec. In Angola, for instance, China provided not just financial aid, but clinched the deal with a gargantuan military package even as OVL waited for cabinet approval. Almost parallel, the petroleum ministry in conjunction with the Indian Trade Promotion Organisation has asked Indian exploration majors to participate in the India Show that begins in Sao Paulo, Brazil's commercial capital, on March 6 to showcase the capabilities of their companies in the petroleum sector.
Source: IANS
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