IndianOil, Oil India joins hands with Algerian co for exploration in Libya
New Delhi   22-Jan-2008
Two petroleum PSUs, IndianOil and Oil India Ltd, have joined hands with Sonatrach, the national oil company of Algeria, for prospecting for oil in a Libyan onshore block, it is learnt. The Algerian company will own 50 per cent interest, while the rest will be equally held by the two Indian companies, sources say. It is also learnt that the two PSUs, which have agreed to cooperate in looking for oil and gas abroad, have teamed up with Reliance for exploring in a block in East Timor. The three Indian companies have a 50 per cent interest in the block, with Reliance owning half of it and the two PSUs equally owning the rest. <b>Exploration license</b> Meanwhile, Oil India Ltd has received petroleum exploration license from the Government of Andhra Pradesh for prospecting for hydrocarbons in the onshore block named KG-ONN-2004/1. This, according to sources in the company, is significant because the block abuts the one that contains the prolific Rawa field. OIL holds a 90 per cent interest in the block, with the Canadian Geoglobal holding the rest Sources told Business Line that the block was previously with another company, which had done some seismic shooting. OIL is now re-processing the data and simultaneously collecting 3D data at the block. A joint study of both the blocks will tell OIL whether or not to put money in drilling in the block. OIL proposes to invest Rs 4,575 crore in 2008-09 and 2009-10 in exploration and production. In 2006-07, the company produced 3.11 million tones of oil (and oil equivalent gas). The company has fixed for itself a target of 3.5 million tones for 2008-09.