ONGC-Videsh favours joint exploration with Russian firms

Chennai, March 20 : State-run overseas oil and gas exploration company ONGC Videsh Ltd (OVL) wants to bid jointly with Russian companies for hydro-carbon projects in that country, a top government official said Saturday.

"We have strongly put forth to the Russian government for OVL to bid jointly with Russian companies - Rosnet Oil Company and Gazprom - for oil and gas exploration projects in Russia," Petroleum and Natural Gas Secretary S. Sundareshan told reporters here.

OVL, which has 20 percent stake in Sakhalin-1 project, wants to bid jointly with the Russian companies for the Sakhalin-3 project. Sundareshan said the government had strongly put forth its idea to Russian Prime Minister Vladimir Putin during his recent visit to New Delhi.

OVL is also looking at Trebs and Titov exploration blocks for which an alliance with Rosneft is being looked at.

Sundareshan said the company had started production in nine projects out of the 39 overseas projects it has.

OVL produces seven million tonnes per annum (MTPA) of oil and two MRPA of gas.

The government Friday permitted OVL to invest USD 2.1 billion in Venezuela.

On the issue of India-Pakistan-Iran (IPI) pipeline, Sundareshan clarified that India had proposed bilateral talks with Iran in May in Tehran, and not trilateral talks including Pakistan.

"The project is pending on the issue of price and point of gas delivery. A new pricing formula has been given to Iran. The gas should be delivered at Indian borders," he said.

India is concerned with the safe delivery of gas at its borders as the IPI pipeline would traverse around 1,000 km inside Pakistan.

India wants Iran to take responsibility of the gas delivery at its borders and payment will be made on delivery.

Iran wants a trilateral agreement -India, Iran and Pakistan- for the safe passage of gas and payment to be made even if the supplies gets disrupted in Pakistan.