Angola: Angola analyses partnership between Sonangol and Indian oil company ONGC for next round of oil blocs

7 July 2008

New Delhi, India, 7 July – The Angolan authorities are assessing a proposal from India of a partnership between two state oil companies from the two countries, Sonangol and ONGC Videsh, in the next tender for oil blocs in Angola, the Indian government said Friday.

In a statement issued in New Delhi, the Indian Oil Ministry said that Minister Murli Deora had met with his Angolan counterpart, Desidério Costa on the sidelines of the World Oil Congress in Madrid.

The Angolan minister “said that Angola was planning to offer a further 10 oil blocs, including in deep waters, to be bid for by oil producing and exploration companies.” The invitation to put forward proposals is likely to take place after the legislative elections, in September of this year, according to the same source.

In order to increase its chances of success in the tender, India wants ONGC Videsh to present a joint proposal with Sonangol.

The Indian proposal, which was put forward at the end of last year to the Angolan Foreign Minister, João Bernardo de Miranda, also involves oil exploration projects in India and Portuguese-speaking countries.

Despite the several offers presented at the latest auctions for oil blocs, ONGC has not so far managed to gain a foothold in Angola, a country which is now the biggest oil exporter to another emerging economy, China.

Over the next five to seven years Angolan is expecting investments of US$100 billion in its oil and gas industry. (macauhub)