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MoneyControl.com: ONGC, Shell yet to agree on bid strategy for NELP-VI

Barely two weeks away from the last date for participation, ONGC is yet to enter into any firm arrangement with Royal Dutch Shell for bidding jointly in NELP-VI.

Though both the companies entered into a broad-spectrum collaboration understanding in January, differences over detailed terms and conditions came in the way of jointly bidding for CBM-III.

Accordingly, a re-negotiation exercise was taken up in July to define the strategy for NELP-VI and other issues, including participation in the proposed bitumen refinery at MRPL, co-operation in exporting MRPL products and participation in the proposed petrochemicals project at Dahej.

While re-negotiation is on and the top brass of both ONGC and Shell Exploration BV have met at least twice since July to resolve the differences, according to sources both the companies are yet to agree on a joint bidding strategy in NELP-VI.

“We are still discussing issues with Shell and other prospective partners,” a company official said. “However, participation of Shell is not finalised as yet.”

ENI India may bid

Meanwhile, a similar understanding between ONGC and ENI Italy seems to be working well. According to sources, ENI India Ltd — the Indian arm of ENI Italy — has agreed to bid jointly with ONGC in NELP-VI.

ONGC-ENI combine had won two blocks AN-DWN-2003/2 in the deepwaters of Andaman and onland block of RJ-ONN-2003/1 in Rajasthan in NELP-V.

Sakhalin-I

ONGC will finalise its strategy to monetise Sakhalin-I oil and gas within a month. After deciding to bring two test crude cargoes of approximately seven lakh barrels in India by next month, the company is now conducting a feasibility study for bringing its share of oil and gas in India on a long-term basis.

“The financial viability of bringing the oil and gas to India vis-a-vis overseas sales are yet to be over. Also our decision should be in conformity with the consortium partners. We are expecting to take a call on the issue within a month,” an official said.

Taken from Business Line

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