Indian Oil companies keen on Colombian hydrocarbon sector

New Delhi: Domestic companies in the hydrocarbon sector have expressed interest in pursuing various business ventures in Colombia.

While public sector undertakings ONGC and Oil India envisaged interest in acquiring oil and gas fields in that country, gas transmission and marketing major GAIL (India) showed keenness in petrochemical and CNG projects in Colombia.

The companies expressed this during a bilateral meeting and subsequent Memorandum of Understanding signing for cooperation in hydrocarbon sector between the two countries.

The MoU was signed by the visiting Colombian Minister of Energy and Mines, Mr Hernan Martinez Torres, and the Petroleum Minister, Mr Murli Deora.

Mr Deora explained the MoU provides an umbrella framework to facilitate and enhance bilateral cooperation in this sector. The two sides have agreed to cooperate in the entire spectrum of hydrocarbon sector, particularly in the areas of exploration and production of oil and gas, exchange of training and human resource development, and exchange of visits of professionals and technicians. He also said, “We will be setting up a Joint Working Group in the hydrocarbon sector for enhancing cooperation between our countries.”

While ONGC sought more oil blocks and expressed a desire to participate in the latest licensing round of Colombia, OIL also expressed interest for acquiring exploration blocks on nomination basis. GAIL was interested in building a petrochemical plant, setting up gas pipeline network and city gas distribution projects in that country.

“We are exploring opportunities for participation in implementing enhanced oil recovery and improved oil recovery projects in the existing fields of Colombia,” Mr Deora.

ONGC Videsh Ltd, the overseas investment arm of ONGC, and private sector major Reliance Industries Ltd (RIL) already have assets in Colombia.

OVL has a producing asset in Colombia as a joint venture with Chinese company Sinopec. This asset has current crude oil production of 25,000 barrels per day. Besides, OVL also has three offshore exploration blocks in Colombia. It is the operator in two of these blocks.