OVL, Mittal, Essar shortlisted for Algerian bid

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ONGC Videsh, Essar, Oil India and Steel baron Lakshmi N Mittal's investment firm have been shortlisted by Algeria to bid for oil blocks on offer in its latest licensing round.

While OVL, the overseas investment arm of state-run Oil and Natural Gas Corp (ONGC), and OIL have been shortlisted as operators of the oilfields, Mittal Investment Sarl and Essar have been prequalified to participate as financial investors, industry sources said.

OPEC member Algeria is offering 16 zones called parameters for bidding in its 7th exploration and production licensing round, bids for which close on December 3, 2008.

Each zone or parameter contains two to three blocks and in all there are 38 blocks in the 16 zones on offer.

Companies have to make bids for the 16 parameters (zones) and not individual blocks, that would be awarded within two hours of the bid closing on December 3.

Sources said though OVL and Mittal Investment have a joint venture for overseas oil hunt (called ONGC Mittal Energy Ltd), the two have made separate expression of interests. OIL is likely to bid with state refiner Indian Oil Corp.

Algeria intends to sign contracts on December 17, they said but could not identify the foreign companies shortlisted for the bidding round.

The round, the first since April 2005, has been keenly awaited by multinational companies seeking permits to explore in Algeria, which is among the world's top owners of oil and gas reserves and a major gas exporter to Europe.