OVL, the overseas arm of state-owned Oil and Natural Gas Corp, and CNPC made a joint bid for acquiring Petro-Canada's 38 per cent stake in Al Furat fields in Syria.
"We have made a joint bid for a property in Syria," Subir Raha, chairman and managing director and OVL chairman said. The government run firms, often archrivals in the race for overseas equity oil, are teaming up for the first time.
Eight firms, including the consortium of Indian Oil Corporation and Oil India Ltd, are in race for Petro-Canada's stake in Al Furat venture in Syria. The value of the 20-year-old 36 oilfields is put around $1 billion.
Raha said the OVL-CNPC joint bid has the two firms sharing equity in 50:50 ratio. "We have been in touch with each other for long. This is one thing that has come through," he said.
The Indian flagship firm for overseas acquisitions had competed with the Chinese firms for oil properties in Central Asia, West Africa and Latin America.
They were pitched head-on for buying Canadian firm PetroKazakhstan, which has most of its operations in Kazakhstan, and EnCana's Ecuador assets.
Raha described prospects of further joint bids by OVL and the Chinese firm as "bright" and said further bid would depend on the opportunity. "We need to develop a lot of mutual trust and confidence."
