Videocon ropes in Oilex for NELP block bids

PETROLEUM COMPANIES EXPLORE NEW FRONTIERS

Videocon is looking at increasing its presence in the West Asian and African countries.

Videocon Industries and Australian oil major, Oilex NL, have decided to jointly bid for oil and gas blocks under the new exploration and licensing policy (NELP) VI.

V N Dhoot, chairman, Videocon told Business Standard that the combine was working out a plan to bid in NELP VI and coal bed methane (CBM) III.

Under NELP VI, 55 exploration blocks will be awarded, which include 24 deepwater blocks, 6 shallow water and 25 onshore blocks. The government has presented 10 CBM blocks on offer under CBM III. Industry sources said that the Vedeocon-Oilex combine would bid for most of these blocks.

"Both companies are working together in the upstream sector for long. In NELP V bid also, we have participated together and got a block. The combine has recently got a block in Australia," Dhoot said.

Apart from these, Videocon had won exploration rights for one block in Nigeria. Videocon is looking at increasing its presence in the West Asian and African countries.

Dhoot said Videocon was bidding for 2 blocks in Jordan and the result was expected in 3 months. "Videocon-Oilex combine with a few consortium partners had won a block in South Oman Salt basin. The same consortium is bidding for one more block in the same country and the result will come out in 10 days. The consortium will invest Rs 2000 crore in 5 to 7 years for the production of oil and gas in Oman," he added.

Oilex has 30 per cent participating interest in production sharing contract covering the Cambay field located onshore Gujarat with Gujarat State Petroleum Corporation and Niko Resources. Oilex is the operator. Oilex is an oil and gas exploration company with a portfolio of exploration permits in the Surat, Eromanga, Otway Basins.

Industry sources said Videocon was planning to issue global depository receipts (GDR) to part-finance the business plans.

Dhoot refused to divulge any details on this. "The shareholders at the extraordinary general meeting had approved the issue of GDR through prospectus or by private placement on preferential basis or on rights basis, last year. The company is likely to issue GDR this year," sources said.