ONGC is named operator in S Arabia

Saudi Arabia, the largest oil producing country in the world, has invited Oil and Natural Gas Corporation (ONGC) to participate in the country's exploration and production (E&P) activities 'as operator'.

Earlier, Saudi Arabia had shortlisted ONGC for taking part in the E&P activities but not as operator. Subsequently, it informed ONGC that it could be the operator as well, if it so desires.

This is the highest recognition of ONGC's technical and financial powers since only oil majors have been operating in that country so far . "This proves that ONGC has come of age. This has taken us into a big league," Subir Raha, chairman and managing director, ONGC told Business Standard here.

Raha said ONGC's foreign investment arm, ONGC Videsh Limited (OVL), would enter into negotiations with the Saudi authorities on this. He was hopeful that OVL would be able to clinch the deal. "If we get a foothold in Saudi Arabia, we can expand the business there with the help of other multinationals operating in that country," a senior ONGC official said.

The Mecca of oil, Saudi Arabia has the largest reserves of 262.697 million tonnes of oil and earns $62,981 million per year on the sale of various petroleum products.

Saudi Aramco is the biggest oil company operating in Saudi Arabia. The invitation to ONGC implies that that country is planning to induct new players in the development of its oil activities.