ONGC set to submit Ecuador bids in Nov

Petroleum major Oil and Natural Gas Corporation (ONGC), which has been eyeing various oil blocks across the world, would be submitting bids for five oil blocks in Ecuador in Latin America this November.

ONGC Videsh (OVL), the company's arm for overseas operations, is currently preparing the bid documents.

A well-placed source with OVL said on Sunday that the company would also bid for oil blocks in Libya and negotiations are on with the Dubai-based Al Thani group for properties outside Libya.

Chairman of OVL, Subir Raha, who was in the city to attend meetings at the Indian Institute of Management-Ahmedabad, and the National Institute of Design, said, "We are in advanced stages of talks with Encana Corporation of Canada which owns the oil blocks in Ecuador and OVL is interested about these prospective oil resources."

Raha said, "At present we can't comment further on Ecuador and Libya blocks but the company is seriously pursuing its plan to expand activities in these countries."

EnCana had earlier in September offered its equity in five blocks in Ecuador and of these blocks, four are already producing oil and reportedly have rich reserves.

The Canadian major also has put up a proposal to offload 36.3 per cent of its equity in the 500-km long crude pipeline, Oleoducto de Crudos Pesados, with a capacity of 4,50,000 barrels per day.

The source, however, said OVL is not interested in the pipeline. "The company is more interested in the oil blocks and also some more oil blocks besides the five which have been put for equity partnership. Major global petroleum companies from Spain, China and the US are expected to submit bids for the Ecuador blocks and finalisation of the bids will be done only by early December."

OVL has already finalised negotiations with the Al Thani group for 15 oil blocks and is also trying to pick up stakes in few more blocks outside Libya in which Al Thani has interests.

Bidding for the Libyan blocks are also expected to commence this fiscal year, the source added.