India, China bid for Colombian oil blocks

NEW DELHI, April 10 (UPI) -- Indian and Chinese oil firms are planning to jointly bid on oil blocks in Colombia.

The Indian Express newspaper said Monday India's ONGC Videsh Limited is in talks with Chinese oil giant Sinopec to jointly bid to acquire onshore producing and exploration blocks in Colombia.

OVL is seeking to acquire a 50 percent or greater stake in Ominex de Colombia Ltd., which produces around 9,450 barrels per day. A news report said the net proven reserves of the producing blocks are approximately 157 million barrels.

"Ominex is willing to sell 100 percent of its interest in the oil blocks, provided the price is right. If OVL and Sinopec agree to jointly bid for the oil producing property, it will be the second time that OVL and arch-rival Chinese firms will be teaming up to bid for a oil property," an Indian Oil Ministry spokesman said. OVL once bid with Chinese oil company CNPC for PetroCanada's stake in Syrian oil-producing properties.

"The (India-China) association is aimed a improving its chances of success," the spokesman said.

For China, the spokesman added, the joint bid will mean spending less on acquisitions as their main competitor, India, has been making aggressive bids in the market.

"And the prevailing regime of high oil prices makes for a seller's market, with too many players chasing few properties," said an unidentified Oil Ministry official

The Colombian oil field purchase move has been called Project Amazon by the Indian Oil Ministry.