OVL in talks with Shell for Nigerian oil stake sale

13 Dec 2006

Mumbai: ONGC Videsh Ltd (OVL) is negotiating with Royal Dutch Shell and Total SA of France for sale of a 1 0 to 15-per cent stake in its Nigerian blocks blocks OPL 212 and 209.

"We are talking to Shell because they have evinced interest for participating in the Nigerian blocks and their team was here," ONGC's chairman and managing director R S Sharma said.

The OPL 209 block, acquired by ONGC Mittal Energy Ltd (OMEL), is close to Shell's Bongo fields and has reserves of 800 million barrels.

If the deal goes through, Total will be partnering the Indian upstream major for the first time, while Shell already partners ONGC's foreign investment unit, OVL, in Brazil's Campos basin.

Sharma said the second crude consignment from the Sakhalin fields in Russia was expected in the next 10 days. "The cargo would be about the same quantity as the first one (90,000 tonnes)," he said.