Financial Daily from THE HINDU group of publications
Wednesday, Aug 31, 2005

Port Info

Group Sites

Corporate - Outlook
Industry & Economy - Petroleum

After losing PetroKazakh deal, ONGC now turns to Ecuador

Pratim Ranjan Bose

Kolkata , Aug. 30

AFTER losing the PetroKazakhstan deal to Chinese National Petroleum Corporation, ONGC is now looking for some solace in Ecuador.

However, its bid for an oil-field-cum-refinery project in the country is hanging in the balance, as Ecuador is looking for investors who would take charge of developing the downstream sector as well. ONGC, for its part, is looking for a stake in a number of oil blocks in that country and is yet to promise such a wide exposure.

"The demands of Ecuador, Venezuela and Cuba are more or less the same. All are looking for investors who would not restrict their activities to the exploration and production of oil, but also take part in the development of the downstream sector — as is offered by the international oil majors. This is an unofficial tag attached with the official bidding proposals," a senior ONGC official said. ONGC's problem is that promising such an exposure across the oil value chain is subject to the approval of the Petroleum Ministry, which, however, holds that the company's core competence lies in exploration and production.

"Though we are trying to project ourselves as a complete oil company having a presence in the entire energy value chain in India, we are still undecided about such a wholesome presence overseas," the source said.

ONGC was invited to bid for the development of the Ishpingo-Tambochocha-Tiputini oil-field-cum-refinery project in Ecuador by the Energy Minister of Ecuador, Mr Eduardo Lopez Robayo, during his visit to India in January this year.

The oil field, which is estimated to have 909 barrels of reserve, is located in that country's eastern Amazon jungle bordering Peru. The total investment in the project is estimated at around $2.5 billion.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page


Stories in this Section
Saregama setting up master server with 3 lakh songs

Goldman ups stake in Suven
Reliance Energy to appoint separate CEOs for Delhi arms
Jaipuria consultancy arm
Taj-GVK Hotels to add rooms
Sujana Metal to hike share capital
Cranes Soft board okays pref issue
Textile mills to outsource from powerloom units
TNEB can levy extra charges for consumption during peak hours: HC
From drawing board to vehicle rollout — Ashok Leyland to leverage multiple tech
RPG Group to sell idle assets
Trent acquires 76% stake in Landmark for Rs 103.6 cr
Bajaj Hindusthan board okays 55% stake in Pratappur Sugar
Shree Renuka Sugars plans IPO to fund Rs 128-cr expansion
BMW team briefs Jayalalithaa, plans to invest Rs 180 cr
NDTV to tie up with Malaysian broadcaster
Pantaloon plans beauty parlours
Himatsingka board to consider bonus issue, share split
GE Healthcare expects growth from India-centric products
After losing PetroKazakh deal, ONGC now turns to Ecuador
Flood damage to plant may dent Asahi India's financial performance
PTC India to pull on without a chief for now

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line