ONGC in talks with foreign firms for KG Basin

ONGC today said it is in talks with a number of global players, including Brazil's Petrobras, Italy's ENI, and Norway's Norsk Hydro, to develop its gas rich block in Krishna Godavari Basin.

"A number of international majors have shown interest in participating in the block, and we are primarily in talks with Norsk Hydro, ENI and Petrobras," ONGC Chairman R.S. Sharma said. He added an agreement was likely to be firmed up with a global player in a few months.

Meanwhile, Venezuela's state-owned Petroleos de Venezuela SA is in talks with ONGC for supplying additional crude to India from 2012, Luis F Vierma, V-P, PDVSA, said today.

He, however, refused to say how much stake ONGC was willing to offload.

ONGC has 90% stake in the KG Basin block, while Cairn India owns 10%.

ONGC's gas discovery is said to be the biggest in KG Basin, with reports pegging reserves at over 22 trln cubic feet.

"We are still assessing the size of reserves... It will take some time," Sharma said.

He said gas production from the block was expected to start after 2011.

Currently, Reliance Industries Ltd.'s gas reserves in D-6 Block in KG Basin is pegged at 14 trln cubic feet, while that of Gujarat State Petroleum Corp is estimated at 20 trln.