OVL-OIL-Turkish Petroleum combine to bid for Iraqi oilfield

The ONGC Videsh-Oil India Ltd combine is planning to join a consortium of Turkish Petroleum Corp (TPAO) to bid for Iraq's giant Halfaya oilfield, which the country is offering for exploration under its second licensing round this week.

There is a possibility of Russia's Rosneft or Gazprom joining the consortium, industry sources said.

Under the plan, Turkish Petroleum will hold 50 per cent stake in the consortium while OVL would hold 30 per cent and OIL the remaining 20 per cent. Once the Russian companies decide to join the consortium, the shareholding of TPAO and OVL will be reduced, sources added.

Iraq has put 10 groups of fields on offer in the second tender of hydrocarbon blocks due on 11-12 December.

The Halfaya field is estimated to hold reserves of 4.60 billion barrels of oil and has a projected 13-year peak output of 4,00,000 barrels per day.

Exploration of the Halfaya field and start-up of production would require investment of an estimated $8-10 billion, the sources said.

French energy major Total SA and Royal Dutch/Shell are also expected to bid for the Halfaya field. Iraq has asked 45 pre-qualified oil firms to quote the dollar-per-barrel price they want for developing the fields.

OVL along with OAO Gazprom and TPAO had lost a bid for the Zubair oilfield in the first Iraqi licensing round in June as Iraq did not agree to the price of oil. Iraq had pegged the price of Zubair oil at $1.90-2.00 a barrel.