Reliance Exploration and Production, a subsidiary of Reliance Industries, has signed production-sharing agreement for two exploration blocks in Yemen. The exploration blocks 34 & 37 are located in Jeza basin of eastern Yemen. The work consists of conducting seismic survey and drilling of exploratory wells based on comprehensive geological and geophysical studies. In both the blocks Hood Energy will partner RIL with 30 per cent participating interest.

RIL is present in Yemen since 2001 when it was allocated block no 9, where substantial reserve of hydrocarbon has already been established and one of the discovery has been put on early production. In this block, exploration is also continuing with a number of identified hydrocarbon prospects. RIL and Hood Energy hold 25 per cent each in this block and Calvalley Petroleum with 50 per cent are the partners in this joint venture.

ONGC’s foreign arm ONGC Videsh has bagged two exploration blocks in Brazil. The deepwater block 470 in the Espirito Santo basin and shallow water Block 1413 in Santos basin are stated to be highly prospective. "ONGC Videsh (OVL) had made a focused bidding for some of the blocks and it was very satisfying for the company to have won the two prioritised blocks," OVL managing director RS Butola said.

For Block ES 470 won by ONGC Videsh, competitive bids were offered by a consortium led by Petrobras and another consortium led by Perenco. Whereas for block SM 1413 bids were offered by Petrobras and Ecopetrol. OVL already has a minority interest in block BC-10 which is under development and has recently signed the Farm-out Agreement with Petrobras for three offshore blocks. ONGC Videsh has been among twenty four which qualified as operator ‘A’ including Petrobras, Shell, Exxon, ENI, Chevron.

Agencia Nacional do Petroleo (ANP), the regulatory agency of Brazil, had announced the opening of Brazil bidding round 9. Bids have been invited for 271 blocks in nine basins. Seventy four exploration and production (E&P) companies had applied for these blocks. "The bids were opened in the presence of the participants on November 27, 2007.

A total of around R$ 2.1 billion (almost around $1.2 billion) was offered by the companies as signature bonus which has created a record and surpassed all expectations," Mr Butola said.

"This success is a step further towards consolidation of OVL’s activities in Latin America, for the much needed equity oil for India," ONGC chairman RS Sharma said. In September, OVL had won three blocks, one in consortium with Ecopetrol and Petrobras and two in consortium with Ecopetrol, in the Carribbean bid round of Colombia, of which it is the operator in two.

Oil and Natural Gas Corporation (ONGC) has made a new gas discovery in Rajasthan’s Jaisalmer basin. Mr D.K. Pande, Director (Exploration), ONGC, said, "we have reached the targeted depth and while testing the first zone we encountered gas. "Testing of the second zone is still on. Only after the entire testing is completed that we will be able to assess the find," he said.

The company hopes to establish the reserve estimate of the discovery in the next couple of weeks, Mr Pande said. ONGC was awarded the block on a nomination basis before the New Exploration Licensing Policy rounds were introduced. "Since it is a nomination block, the company has the time to inform the Directorate General of Hydrocarbons after the complete work is done. The company will soon inform the DGH," he said.

ONGC is also examining prospects of tying up with Oil India Ltd for the gas produce in the area. "With this discovery, we are looking at the fields commercially," he said. ONGC has made nine hydrocarbon discoveries in first half of the financial year 2008. The company has made two discoveries each in western onland (Ankleswar and Dabka), Assam & Arakan Basin, and Assam Shelf. It has made one discovery each in Mahanadi deepwater, Krishna Godavari onland, and Cauvery onland.

A ministerial delegation from Chad, which met external affairs minister Pranab Mukherjee and minister of state for commerce Jairam Ramesh, has expressed willingness to allow India to participate in oil exploration in the country. India has offered Chad training in various sectors, including the petroleum sector, in exchange for participation in oil exploration in the West African country.

At present, there is no Indian participation in the oil and gas sector, while China is making its presence felt in a major way from oil exploration to building the country’s first oil refinery. 

The government, aware of these developments, is now actively looking at initiating oil talks with the landlocked country, especially as the Chad government plans to auction 20 blocks by the end of 2007 and beginning of 2008.

And the Chad government, which wants Indian expertise in setting up a fertiliser plant, a cement factory and technical know-how in the diary and leather industry, is only too willing to trade with oil blocks. Sources said the Chad government in response to the Indian interest has said it will look at giving oil blocks to India.

Chad commerce minister Youssouf Abbassalah, who is leading the delegation, said, "I would like to mention that our minister of petroleum was in Delhi (for the India-Africa Hydrocarbon Conference) which is an indication that we are open for a partnership with the private sector. This co-operation could be either in upstream or downstream and in exploration.’’

He also said, "Since 2003, we have been producing 200 million barrels a year. We have a number of oil blocks which are unexplored." Though he was unwilling to reveal the exact nature of talks with the government, he said, "We are open to any inquires in the petroleum field from India and its private sector."

Turkmenistan has offered a preferential treatment to Indian oil companies, close on the heels of ONGC-Mittal Energy (OMEL) acquiring 30% stake in Blocks 11 & 12 in the Turkmen sector of Caspian Sea. In a recent meeting with petroleum minister Murli Deora, Turkmenistan’s head of state agency for hydrocarbon resources Baimurat Muradov outlined the three directions in which the Indo-Turkmen energy cooperation can proceed.

These include production-sharing agreements (PSA) in the offshore Caspian Shelf for oil & gas blocks, service contracts for Indian companies in the onshore hydrocarbon facilities (as onshore PSA is not allowed in Turkmenistan) and the Turkmenistan-Afghanistan-Pakistan-India (Tapi) gas pipeline project.

The 10th steering committee meeting of Tapi is scheduled to be held in Islamabad by the year-end. India would require 250 million m3 of natural gas per day by next year and Turkmenistan can be an ideal partner in this context.

"Mr Muradov assured full co-operation in completing the formalities for applying for PSAs in the Caspian sector. Regarding onshore facilities, he said Indian companies should sign service contracts by participating in tenders. He reiterated that Turkmenistan is interested in Indian participation owing to India’s known expertise in these sectors," an official said.

India proposed the two countries should sign an inter-governmental MoU for cooperation in upstream and downstream activities where ONGC, IOC and Gail could work with their Turkmen counterparts, the official said.

Chairman IOC briefed Turkmen side about India’s capabilities in up gradation and setting up of new refineries. In the context of a new tender for setting up a refinery in Turkmenistan, he agreed to send a delegation to Turkmenistan and to participate in the tender. Chairman ONGC mentioned about the training that ONGC could offer to Turkmen specialists and it was decided that Turkmenistan will send 8 – 10 specialists for advanced training to ONGC. Similar offer of IOC was accepted by the Turkmen side.

Indian Oil Corp., the nation’s biggest refiner, may spend as much as $3 billion to buy an overseas oil producer to meet rising demand in the world’s second-fastest-growing major economy.

The target will be a company that owns fields in Africa or countries that were part of the former Soviet Union, B.M. Bansal, director for business development, said. The acquisition may be made jointly with Oil India Ltd., a state-run explorer, he said.

Indian Oil and Oil & Natural Gas Corp., the nation’s biggest explorer, are scouting projects in Russia, Kazakhstan, Iran and Africa to meet fuel demand in a race with China, which is securing energy supplies to feed the world’s fastest-growing economy. India imports three-fourths of its oil as production from aging domestic fields is slumping.

The refiner is seeking new oil-producing areas and has sought government help in its hunt for crude producers. India, beaten by China to more than $10 billion of overseas energy assets in the last two years, plans to emulate its rival by building ports and railways in Africa to secure oil and gas fields. Indian companies will seek to build refineries and pipelines in Africa’s oil-producing nations, Petroleum Minister Murli Deora said.

Indian Oil wants to get about 2 million metric tons of crude oil a year from overseas fields by 2012. The company wants to own exploration areas overseas, fields that have already been discovered and need to be developed for production and producing areas, Bansal said. The company owns blocks in countries such as Libya, Nigeria and Yemen where finds have yet to be made, he said.

"The idea is to have a diversified portfolio," he said. To secure fields, the company will offer to build refineries and pipelines in return. Indian Oil has already made such offers to Nigeria, Libya and Turkey, he said.