The Hindu Business Line : IOC-OIL combine eyes tie-up with Statoil

INDIAN Oil Corporation (IOC) and Oil India Ltd (OIL), in partnership with other Indian companies, are eyeing an agreement with Norway's Statoil for acquisition of overseas oil and gas assets.

A senior Petroleum Ministry official told Business Line that the potential tie-up would be discussed during the visit of Petroleum Minister, Mr Mani Shankar Aiyar, to Norway starting August 30.

"The Minister will also initiate a dialogue for a possible joint venture to acquire oil and gas assets in third countries," the official said.

Oil and Natural Gas Corporation (ONGC) is likely to be among the other Indian firms joining forces with IOC-OIL.

The proposed collaboration between OIL-IOC and Statoil is in line with recommendations made by the government panel on Synergy in Energy, the official said.

India wants to collaborate with Norway to acquire oil and gas assets in Barents Sea, known to have great hydrocarbon potential.

Statoil is an integrated oil and gas company with 23,899 employees and presence in 29 countries. The group handles 60 per cent of all Norwegian oil and gas production, and its international production is rising steeply.

One of the world's biggest sellers of crude oil, Statoil is also a major supplier of natural gas in the European market and has substantial industrial operations.

Further, an understanding is likely between ONGC and Norsk Hydro for joint bidding, enabling each to take advantage of the other's expertise.

While Norsk Hydro has expertise in deep-sea exploration using new technologies, ONGC has offshore and deepwater blocks.

The tie-up will also facilitate joint bidding for oil and gas properties in third countries, the official said.

ONGC is likely to ink about seven understandings focussing on specific areas of cooperation, he said. Further, an agreement is also likely between the Directorate General of Hydrocarbons (DGH) and the Norwegian Petroleum Department.

"We hope to have research and development, training programmes, and a regulatory framework on safety," he said.

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