OIL holds talks with Petrobras

The country's second largest government-owned exploration company, Oil India (OIL), is in talks with Brazilian exploration major Petrobras for jointly bidding and acquiring stakes in deepwater oil and gas exploration blocks overseas.

"We want to enter deepwater exploration in a big way, and Petrobras has a proven track record in deepwater blocks," a senior OIL official said. "We may tie up for jointly bidding under NELP-VII as well," the official added.

OIL Chairman and Managing Director M R Pasrija confirmed that the company was in talks with offshore exploration majors but declined to divulge any names. "It is too early to give out names at this point," he said.

OIL, which has reserves of 154 million tonne of oil and oil equivalent, has expertise in onshore exploration. "We want to slowly evolve into an integrated exploration company," the official said. The company, in partnership with Oil and Natural Gas Corporation (ONGC) won two deepwater blocks in the Krishna Godavari basin under the sixth of New Exploration and Licensing Policy (NELP VI).

The company has also started negotiations with other oil companies for jointly bidding for blocks under NELP VII. Pasrija again refused to divulge names.

Petrobras, on its part, is also interested in entering the exploration sector in India. The company has been in talks with the country's largest exploration company, Oil and Natural Gas Corporation (ONGC), for a joint exploration in deepwater blocks, including the block in the Krishna- Godavari basin where ONGC has recently discovered gas.

ONGC officials have been saying that they are keen to tap Petrobras' expertise in deepwater exploration.