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Rediff News  All News  » Business » OVL, Sinopec may jointly bid for Colombian oil field

OVL, Sinopec may jointly bid for Colombian oil field

Last updated on: April 10, 2006 14:12 IST

ONGC Videsh Ltd, the foreign arm of state-owned Oil and Natural Gas Corporation, may tie up with Chinese firm Sinopec to make a joint bid for at least 50 per cent stake in a Colombian oil field.

Top OVL officials last week held parleys with China's national oil company for joint submission of bid for Omimex de Colombia Ltd, industry sources said.

Scotia Waterous, hired by Omimex to select a partner, has indicated Omimex Resources will be willing to sell 100 per cent of its interest if offered the right price, they said.

Omimex, incorporated in Delaware, entered Colombia in 1994 with the acquisition of Texaco's 100 per cent interest in the Velasquez fee mineral property.

A year later, it bought the remainder of Texaco's Colombian assets, including a 50 per cent interest, in the nearby Nare and Cocorna Association Contracts.

It produces approximately 9,450 barrels per day net of crude oil from the Velasquez property and 6,965 barrels oil from the Nare and Cocorna Association Contracts. Net proved reserves are 157 million barrels.

OVL hired Gaffney Cline Associates as the technical consultant while Denton Wilde Sapte and UBS are engaged as the legal and financial consultants, respectively.

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