ONGC may join hands with Pertamina in NELP bidding

ONGC may join hands with Pertamina in NELP bidding

NOV 23: ONGC, which signed a wide-ranging memorandum of understanding with Pertamina in New Delhi for possible participation in upstream exploration and revival projects in Indonesia, was keen on extending the partnership in the domestic arena, a senior company official said.

ONGC Videsh Ltd (OVL), the overseas arm of ONGC, will participate with Pertamina in nine specific upstream projects (both onshore and offshore) in Indonesia after technical analysis in exploration and revival of production opportunities, OVL Managing Director Atul Chandra said.

An outcome of Petroleum Minister Ram Naik's visit to Indonesia in September and discussions with Indonesian Oil Minister Purnomo Yusgianstoro in Riyadh last week, the MoU was signed by Atul Chandra and Pertamina Director (Exploration and Production) Gatot Kariyoso.

"The agreement could also form the base for Pertamina to participate in the forthcoming exploration projects to be offered in the second round of NELP next month along with ONGC," he said adding the two companies would also participate in international projects in friendly countries, like Libya, Iran and Iraq, to pool their strengths together.

During the discussions following signing of MoU, the two companies also expected to explore the possibility of supply of crude oil and LNG by Jakarta to India, as well as participation by Indian companies in Indonesian upstream oil projects.

Speaking on the occasion, Petroleum Secretary P Shankar said that in an era of mega mergers, national oil companies have to poll in their strengths and resources to stand competition. ONGC chairman B C Bora, additional secretary Naresh Naradand, joint secretary J M Mauskar were also present on the occasion. Pertamina is a vertically integrated national oil company with oil reserves of nine billion barrels and 123 trilllion cubic feet of gas reserves. The Pertamina team would also visit ONGC's technical facilities in Dehra Dun as part of understanding the capabilities of its partner.

OVL has also signed a MoU with the national oil company of Algeria on November 10 to work together on a discovered oil field project in Iraq. OVL team had been invited to discuss some exploration and discovered field projects in Algeria within this week, Atul Chandra said.

"A cooperation is likely to develop shortly between OVL and national oil company of Venezula where specific projects have been identified for joint participation," he added.