IndianOil-OIL, OVL to bid for Libyan blocks

Indian Oil Corp (IOC) - Oil India Ltd (OIL) combine and the overseas arm of Oil and Natural Gas Corp (ONGC), ONGC Videsh Ltd (OVL), will take part in the second round of oil and gas blocks bidding in Libya, a senior petroleum ministry official said on Thursday.

"IOC-OIL combine and ONGC are taking part in the second round of bidding in Libya. The bids for the second round will open on 2 October," the official said.

Libya has offered 44 blocks in the second round of bidding under the Exploration and Production Sharing Agreement. Libya has proven crude oil reserves of 39 billion barrels and the country believes potential reserves may be triple that amount. Currently, only a quarter of its territory is covered by agreements with oil companies.

In the first round of bidding in Libya, IOC-OIL consortium won Block 86. OIL is the operator of the block. In the current round of bidding, Libya has offered 10 blocks in offshore areas; eight blocks each in Cyrenaica, Murzuq and Kufra basins; six in Sirt Basin; and four in Ghadames Basin.

The Sirt Basin has 80 per cent of Libya's oil reserves and 90 per cent of its production. The region is also expected to be the focus of most exploration companies.