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ONGC to sell its stake in oil block
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newsbyte on 09 May, 2008 05:19:12
 
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.