ONGC bids for Calgary

State-owned Oil and Natural Gas Corp (ONGC) has bid for acquiring Canadian oil and gas firm First Calgary Petroleum Ltd (FCP), which owns high potential oil and gas blocks in Algeria.

ONGC, through its overseas arm, ONGC Videsh Ltd, has made out two bids - one for acquiring Calgary-based FCP as a whole and the other for acquiring its interest in Ledjmet and Yacoub exploration blocks in Algeria's Berkine basin, industry sources said. FCP is listed on the London and Toronto stock exchanges.

OVL faces competition from European and Chinese firms. At least two European majors have also bid.

A top company official confirmed having bid for FCP but refused to give details. "All I can confirm is that we have put in our bid."

As on October 31, 2004, independent engineering firm Degolyer and Macnaughton has estimated the gross proved, probable and possible recoverable reserves to be approximately 13.5 trillion cubic feet of natural gas equivalent (TCFE), consisting of 8.4 trillion cubic feet of natural gas and 860 million barrels of oil, condensate and LPG.

The reserves are attributed to the Ledjmet 405b and Rhourde Yacoub 406a blocks located in Algeria's Berkine basin. Sources said FCP would be OVL's second largest investment overseas after the $1.7 billion investment in taking 20 per cent stake in Russia's Sakhlain-1 oil and gas fields.

OVL is on an acquisition spree as demand outpaces domestic oil and gas output, has interests in oil and gas properties in Russia, Sudan, Vietnam, Egypt, Qatar, Yemen, Iran, Iraq, Myanmar, Australia, Ivory Coast and Syria.

FCP holds 49 per cent stake in the two blocks with the remaining 51 per cent held by Algerian national oil firm, Sonatrach.