Senior ONGC officials told The Financial Express that a team of experts from these companies were recently in the capital and have identified as many as six blocks for picking up a equity stake.

"Petramina and PIDC's experts, during their visit last week, examined the data of the exploration blocks of NELP-II and have shortlisted these exoploration blocks along with ONGC. Petramina desires to pick up equity in four blocks, while PIDC has short listed two", a top ONGC official told The Financial Express said.

It may be mentioned here that out of the 25 blocks offered by the government under NELP-II, bids have been recieved for 22 blocks out of which ONGC has bid for 18 blocks. However, it still remains to be seen as to how many of these will finally be awarded to it. The bids will be awarded in the next two to three months.

"Although ONGC has agreed in principal to give an equity stake to these companies, a formal decision on this will be taken in the ONGC's board meeting slated for April 22," sources said.

Asked about the exact equity to be picked up by these companies, sources said ONGC would retain majority shareholding and the exact details of the equity structure would be worked out later. It is significant to note here that both Petramina and Petrovietnam have entered into a memorandum of understanding (MoU) with the international arm of ONGC Videsh Limited (OVL) for jointly participating in the home countries as also in third countries. Under the MoU, Petramina has offered nine exploration blocks to OVL for participation in Indonesia.

PetroVietnam has recently signed a production sharing contract with OVL for exploration and exploitation of hydrocarbon in offshore Vietnam.

Activities undertaken under this contract have resulted in the discovery of the offshore gas fields of Lan Tay and Lan Do and following a mutual agreement on the gas price, this project is poised to enter development phase.

OVL has a 45 per cent equity in this project and its other partners include PetroVietnam with a 15 per cent stake and BP-Statoil with a 40 per cent stake. Gas is expected to be produced and marketed from these fields by end 2002.

Out of the blocks offered under NELP-II, there are eight deep water blocks on the West coast, seven onland and eight offshore blocks for which six foreign and seven Indian companies have bid. ONGC on its own as also with consortium partners like IOC, GAIL, HOEC has bid for these 18 blocks.

Other foreign bidders who have bid for blocks offered under NELP-II include Cairns Energy of UK, Petrom of Romania, NIKO Resources, Canada, Joshi Technologies of USA, Hardy OIL and Heramec Limited from UK.

Apart from ONGC, Reliance India Limited (RIL) has bid for 15 blocks. Other Indian companies include Oil India Limited (OIL), Indian Oil Corporation (IOC), Gas Authority of India Limited (Gail), Gujarat State Petroleum Company (GSPC) and Hindustan Oil and Exploration Company (HOEC).