India to explore Angolan reserves

India will make a fresh attempt at entering Angola for oil exploration. Union Petroleum Minister Mani Shankar Aiyar's man for pursuing oil diplomacy, Talmiz Ahmed, would head for Angola on February 1 for discussions with the Angolan government.

Ahmed would be accompanied by officials from the Oil and Natural Gas Corporation (ONGC), who would examine the possibility of taking up new blocks there. Angolan government has offered new blocks to India.

Shell had earlier agreed to sell its 50 per cent share in Block 18 to ONGC but the deal could not materialise since the state-owned Sonagol exercised it pre-emption right. The Angolan block would start production of about 200,000 barrels of oil per day from 2007.

Senior petroleum ministry officials told Business Standard that the delegation would try to broad base India's economic relationship with Angola by also focusing on other sectors. Railway reconstruction through expertise from Rites Ltd would be on the agenda.

"India would also be offering help in construction of telecommunication infrastructure which had been torn apart by years of civil war in the country," said an official.

The offshore Block 18 has 50 per cent participation from British Petroleum which is also the operator of the block.

"Sonagol was upset with Shell for negotiating sale with ONGC without it being consulted," said an official. The 50 per cent share eventually went to a Chinese company.

Angola is a key player in Africa's oil industry both as a major producer and exporter. It is the second-largest producer of oil in the sub-Saharan Africa after Nigeria.

Angola produces crude oils that have an API gravity ranging from 32 degrees to 39.5 degrees and a sulphur content of 1.12 to 0.14 per cent. Its oil reserves are estimated at 5.4 billion barrels.