State-owned Oil and Natural Gas Corp is in talks to buyout US oil and gas producer Pogo Producing Co's stake in an offshore Thailand field.
ONGC's foreign arm ONGC Videsh Ltd is talking to Pogo to buy its 46.34 per cent stake in Block B8/32, which is valued at 600-700 million dollars, a source familiar with the process said.
Pogo has appointed Goldman Sachs for the sale.
ChevronTexaco Corp owns 51.66 per cent stake in gas and oil fields in the 1,200 sq mile area known as Block B8/32 in the Gulf of Thailand. Thaipo Ltd, a subsidiary of Pogo has 46.34 per cent and Palang Sophon Ltd, owned by Thailand's Sophonpanich family, had two per cent.
Block B8/32 produces oil and natural gas from three fields: Tantawan, Maliwan and Benchamas. Net daily production in 2003 from these fields was 104 million cubic feet of natural gas and 24,600 barrels of crude oil.
Sources said a Chinese company among others is also in fray for Pogo stake.
India is encouraging its oil companies to acquire oil and gas fields abroad as its domestic consumption, which meets just 30 percent of the demand, remains stagnant at just over 32 million tonnes.
OVL has so far acquired oil properties in a dozen countries including Vietnam, Russia, Sudan, Libya, Iran, Iraq, Syria, Ivory Coast, Australia, Qatar and Myanmar.
