IndianOil-OIL win 3 oil blocks in Libya
New Delhi   15-Dec-2007
The IndianOil-OIL India combine has won three onshore oil blocks in Libya, adding to the two blocks the consortium already had in the nation1 that holds Africa's largest oil reserves. IndianOil-OIL teamed up with Sonatrach of Algeria to win blocks 1, 2 and 3 in contract area 95/96 in the Ghadarnes Basin, industry sources said. In the previous Libyan licensing round, IndianOil-OIL combine had been disqualified from bidding but in the latest round, they were qualified to bid as investors. The two teamed up with Sonatrach, which will be the operator of the blocks. IndianOil-OIL' combine had in 2005 won 7,087 sq km Block 86 and 2,710 sq km Block 102/4. Both hold 50 per cent stake in each and OIL is operator for both. Sources said OIL-IndianOil and Sonatrach will now sign an Exploration and Production Sharing Agreement (EPSA) with the National Of Corp of Libya. The Algerian national oil company will be the operator of the blocks won in this round. Libya auctioned exploration permits in the central, western and southern desert, in its first licensing round in potentially gas-rich areas. Russia's Gazprom joined Shell, Europe's largest oil company.