| Log in

ONGC Eyes Exxon’s Stake In Angola Block

01 November, 2010

Indian state-run explorer Oil and Natural Gas Corp is examining a proposal to buy U.S. energy major Exxon Mobil’s holding in an oil block in Angola, a top official said on Monday.

“The proposal has come to us. We keep getting such proposals and we are examining,” said R.S. Butola, managing director of ONGC Videsh, the overseas investment arm of ONGC. “Definitely, we are interested.”

Butola said the talks were at initial stages and declined to comment on the valuation of the deal.

Analysts said the Angolan field stake buy would be a welcome acquisition for India, which has been lagging China in the hunt for natural resources as both countries seek to feed their fast economic growth.

Global petroleum firms Exxon Mobil and Total want to exit from Block 31 in Angola, Angolan Oil Minister Jose Botelho de Vasconcelos said separately at an energy conference in the Indian capital.

He did not give any reason for the planned stake sale by Exxon and Total.

“In Block 31, some of the companies are leaving the block. Our state oil company Sonangol has the responsibility to find other partners,” the minister said, without commenting on the likely deal size.

Earlier, the Economic Times reported that ONGC was in talks with the Exxon’s Angolan arm, Esso Exploration, to buy the U.S. energy major’s 25 percent stake in Block 31 for about $2 billion.

A unit of French oil major Total has a 15 percent stake in the block, the paper said. The block will produce 300,000 barrels of crude oil per day at its peak by 2012, the paper said, citing the website of the United States Energy Information Administration.

Shares in ONGC, valued at about $63 billion, was trading 1.5 percent higher at 1,322.80 rupees at 0731 GMT in the main Mumbai market that was trading 1.7 percent higher.

ONGC last week posted a 6-percent rise in quarterly profit on higher earnings from crude sales, but missed street estimates on higher subsidy payouts.


Leave Your Comment
Regulatory Issues Could Delay Vedanta-Cairn Deal

Regulatory Issues Could Delay Vedanta-Cairn Deal

Reuters 7 years ago
Regulatory hurdles could delay Vedanta Resources’ purchase of a stake of...
ONGC Videsh to get a piece of big Russian oil field

ONGC Videsh to get a piece of big Russian oil field

Anuradha Verma 2 years ago
ONGC Videsh Ltd, the overseas investment arm of India’s largest oil and...
ONGC Videsh loses $5B bid for ConocoPhillips' stake in Kashagan oil field

ONGC Videsh loses $5B bid for ConocoPhillips’ stake in Kashagan oil field

Bhawna Gupta 4 years ago
ONGC Videsh Ltd (OVL), the overseas arm of oil & gas exploration major ONGC,...
No Comments

ONGC Eyes Exxon’s Stake In Angola Block

Powered by WordPress.com VIP