Angola, Nigeria want aid for oil exploration deals

Along with bids, India will have to offer economic development packages to Angola and Nigeria if it wants to acquire oil and gas exploration blocks in these countries.

The two countries conveyed this to an Indian delegation headed by Petroleum Secretary SC Tripathi today at the 18th World Petroleum Congress.

Economic development package could include assistance in power, railways and construction of roads. Nigeria made it clear that though the winning bidder would get the blocks, the degree of participation there would be commensurate with the development package.

Officials said Indian Oil Corporation would be looking at the refining opportunities in the two African countries. Nigeria is the world's eight largest oil producer but is short on the refining capacity. It produces 2.4 million barrels of light sweet crude per day.

A ministerial delegation from Nigeria will visit India on October 10 for further discussions.

India had lost to other countries in securing oil and gas blocks in Angola and Nigeria after the winning bidders offered economic development packages.

ONGC Videsh lost its bids for two large deepwater blocks "" OPL 321 and OPL 323 "" despite being the highest bidder at $485 million. The Korea National Oil Company won 65 per cent control while ONGC Videsh was offered 25 per cent stake in the blocks for which, bids were opened on August 26.

Nigeria announced this after the Koreans signed an agreement to invest up to $6 billion in the construction of a 2,000 mw independent power plant, a rail transport system and a gas pipeline.

Similarly, Angola's Sonangol blocked OVL's move to buy Shell's 50 per cent stake in Block 18 for about $620 million. The deal would have yielded about 5 mt crude daily for India.

China got the deal by offering aid to the tune of $2 billion for several projects in Angola, compared with India's offer of $200 million for developing railways.

While Angola would be offering fresh blocks in January, Nigeria would be putting over 100 blocks on offer.

The correspondent's visit to Johannesburg was sponsored by ONGC.