Indian oil giants join hands to win Libyan oil agreement
Two Indian oil giants have jointly won an agreement for oil exploration and production sharing in Libya, a news agency reported Monday.
The state-owned Indian Oil Corp., and Oil India Ltd., have won the bid on a 7,087 square kilometer (2,736 square mile) block in the oil-rich Sirte Basin in Libya, Press Trust of India said.
Oil and investment companies from 28 countries bid for the oil exploration concessions, marking the first time Libya, used to a state-controlled economy, has allowed foreign bids.
The Libyan project is the first-ever joint exploration by the two Indian companies, which forged an alliance last month for joint ventures in oil and gas exploration and production in other countries.
India will get an 18.4 percent share of any future production in the block, with the remaining 81.6 per cent going to Libya's national oil company.
If oil is proven in the licensed areas, Libya, which is a member of the Organization of Petroleum Exporting Countries, will fund half of the exploration and development costs, PTI said.
Three giant U.S. oil companies won 11 of the 15 Libyan oil exploration and production sharing agreements, contested by 56 international companies.
The Indian consortium plans to bid for at least two of the 40 licenses Libya plans to offer in a second round next month, officials said.
India, one of the world's most energy-intensive economies, imports more than 70 percent of the crude oil it consumes, with demand for oil rising because of its rapidly growing economy. Consumption of petroleum products is estimated to be 108 million metric tons this year.
Domestic production has remained flat for years.
India's state-run oil firms have struck deals to explore oil and gas in the Middle East, Africa and Russia in an effort to stabilize supplies and prices.
India is looking at investment opportunities in Saudi Arabia, Vietnam, Australia, Myanmar, Bangladesh, Iran, Iraq, Qatar, Kazakhstan, Syria, Egypt, Libya, Algeria, Senegal, Nigeria and Sudan. - AP
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