India, China bid $800 mn for Colombian firm | india | Hindustan Times
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India, China bid $800 mn for Colombian firm

ONGC Videsh Ltd and China Petroleum and Chemical Corp (Sinopec) have jointly submitted a bid to acquire stake.

india Updated: May 05, 2006 13:07 IST

India and China have come together to jointly bid for a stake in an overseas exploration venture to buy out Ominex de Colombia for around $800 million, official sources said.

ONGC Videsh Ltd (OVL), the overseas arm of state-run Oil and Natural Gas Corporation, and China Petroleum and Chemical Corp (Sinopec) have jointly submitted a bid to acquire stake in the company, a subsidiary of the Texas-based Ominex Resources Inc.

"Ominex de Colombia owns a 50 per cent stake in oilfields in Colombia. The remaining stake is held by the Colombian national oil company Ecopetrol," an official said.

The company has net proven reserves of around 157 million barrels of oil and gets about 9,450 barrels of oil per day as its share from the Colombian fields.

In December last year, OVL and China National Petroleum Co International had jointly acquired 37 per cent stake of a Canadian oil company PetroCanada in a Syrian oilfield for $484 million.

OVL, which has around two-dozen assets overseas in 13 countries, and Sinopec submitted their bid last week and plan to hold equal stakes in Ominex de Colombia. Gaffney Cline Associates and UBS are their advisors for the bid.

"If Ominex agrees on the bid price then the matter will go for approval of empowered committee of secretaries and the cabinet," the official added.

ONGC Videsh had last month finalised the acquisition of 15 per cent stake in a Brazilian oil company, marking its foray into the South America exploration activity.