ONGC Videsh (OVL) has bid $1.4 billion for buying out Canadian firm Encana's stake in a cluster of oilfields in Ecuador.OVL has made the revised bid for Encana's stake in the Amazon blocks 14, 17 and Tarapoa, with combined output of 66,891 barrels of oil per day, yesterday, sources familar with the development said.The Indian firm is in the race against Chinese majors for buying out the Canadian firm's stake in Ecuador. In the first round of bidding, OVL had bid a little lower than the Chinese bid of $1.2 billion, sources said. "If successful, Encana would be OVL's second biggest acquisition ever after the coup of sorts few years ago when it got 20% stake in the Sakhalin-I oil and gas fields in Russia for $1.7 billion," a source said.Encana's interest in Ecuador comprise of five discovered fields and two fields under exploration. Since shipping of crude from Ecuador to India may not be economically viable, OVL would arrange it for locations nearer to it.Encana also owns a 36.26% stake in a new 4,50,000 bpd heavy crude pipeline from the Amazon oil blocks to the pacific coast.Sources said OVL has shown a long-term interest in the South American country, and has offered to buy a stake directly or with others in oil concessions controlled by the government there.Encana also owns a 40% stake in oil block 15, operated by Occidental Petroleum Corp. Ecuador has threatened to withdraw Occidental's contract for awarding this stake without obtaining permission from authorities.
