ONGC to sell its stake in oil block

By OUR CORRESPONDENT

New Delhi, May 9: ONGC will offload its 35 per cent stake in an onshore exploration block to MOL Hungarian Oil and Gas Plc.

This was reportedly taken a part of ONGC’s strategy to take internationally reno-wned companies on board as partners for exploration.

The block — HF-ONN-2001/1 — in Himalayan foothills under NELP III has an aerial extent of 1513 sq km.

ONGC signed a farm-out agreement with the Hungarian oil major. However, the assignment under the agreement is subject to the Centre’s approval.

MOL executive vice-president, Mr Zoltan Aldott, said the agreement is a part of their strategy to build a well-balanced portfolio.

MOL is a leading oil major in Hungary and Slovakia and has business ties with Western Europe, Russia and Middle East. It has experience of working geologically complex fold belt areas in similar geological setting in Pakistan and has made discoveries.

This acquisition follows the MoU, which ONGC had with the Hungarian firm in January, for cooperation in hydrocarbon sector. The MoU was signed during the visit of the Hungarian Prime Minister to India, in the presence of Prime Ministers of both the countries. MOL is a fully integrated petroleum company with operations covering E&P and downstream.