ONGC Videsh Limited (OVL) will take part in the bidding process for seven oil and gas blocks that are being put up for auctioning next month in Dare-e-Salaam. It would also look at partnering Tanzania Petroleum Development Corporation (TPDC) for two deep-water blocks.
In a communication to the Petroleum and Natural Gas Ministry, the Indian Ambassador in Dar-e-Salaam informed that a public auction of oil and gas blocks was likely to commence in Tanzania for which the bidding process would start in October 2013.
Good reputation
“Tanzanian Government would prefer well known companies with good track record. ONGC, which discovered Tanzania’s first gas Songo Songo in 1971, when other companies had given up prospecting in the area, enjoys a good reputation there. It is advised that ONGC/OVL along with GAIL India should interact with Tanzanian authorities for the seven oil and gas blocks,” the communication added.
Responding to the offer made by the Ambassador and the Ministry of External Affairs (MEA), OVL has decided to take part in the bidding round.
“OVL has been keenly following the progress, and understands that in addition to the seven deep-water blocks, two deep-water blocks (block 4/1B and 4/1C) are reserved for government where TPDC will be allowed to execute a different exploration approach using a strategic partner . We would like to submit that OVL would be also keen to participate in this strategic approach along with TPDC,” OVL Managing Director S.K. Sarraf communicated to Debnath Shaw, High Commissioner of India in Dar-e-Salaam.
GAIL India, on the other hand, is also keen on acquiring a stake in upstream assets in Tanzania, and is weighing merger and acquisition (M&A) opportunities in the country.