2 January 2008 - 08:49
  • News ID: 123265

Mumbai: Public sector gas firm GAIL India Ltd and explorer Oil India Ltd will jointly bid for oil and gas assets being auctioned under the New Exploration Licensing Policy.

The two have signed a memorandum of understanding for joint exploration and production, natural gas marketing and transmission, city gas distribution, petrochemicals and technology, GAIL said in a statement.

 

The two firms will also jointly bid for overseas exploration blocks.

 

Bids for the seventh round of auction under the NELP, launched earlier this month, are scheduled to close on April 11.

 

 

The government expects to draw somewhere between $3 billion and $3.5 billion for the 57 blocks that will be auctioned.

 

GAIL and OIL are already partners in the Brahmaputra Cracker and Polymer Ltd in Assam, GAIL said.

 

Meanwhile, GAIL along with other state-run firms like Indian Oil Corp Ltd and Oil and Natural Gas Corporation"s overseas investment arm ONGC Videsh Ltd is also planning to tie up with Kuwait Petroleum Corp, press reports quoting sources close to the development said.

 

Kuwait Foreign Petroleum Exploration Company (KUFPEC), the foreign exploration and production unit of Kuwait Petroleum, has expressed interest in jointly participating with IOC in the seventh round of New Exploration and Licensing Policy (NELP).

 

The report quoted IOC official as saying that the company will announce its final plan for a joint venture partner for NELP-VII after January 8. The company also confirmed that it is looking for a partner in the upcoming NELP round.

 

The report also said GAIL and ONGC Videsh are also looking at options for tie-up with KUFPEC in the upstream hydrocarbon sector in Kuwait.

 

 

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News ID 123265

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