ONGC Videsh (OVL), the overseas subsidiary of country’s biggest explorer ONGC, is understood to have won a hydrocarbon block in New Zealand. The announcement is expected shortly, sources told FE.

This would be the PSU’s entry into New Zealand. Currently, the block is at the exploration stage and further work is required to determine the presence of oil and gas. The Taranaki region in the west of New Zealand’s North Island is a prolific basin for exploration, said an official privy to the development.

Talking about the risks of venturing into New Zealand, the official said it was a “moderate” risk country and some international companies were working there.

OVL is expecting the final decision to come in a day or two. Recently, New Zealand offered eight onshore and offshore blocks covering more than 190,000 square kilometres in its latest licensing round, bids for which closed in end-September.

Earlier, OVL’s parent ONGC revealed in an investors’ presentation that it has submitted its bid for the New Zealand block. It, however, did not identify the block it has bid for. The blocks on offer include five onshore areas and three offshore exploration areas.

The acquisition of prolific natural resources overseas has become important because India’s crude import bill has skyrocketed from $112.1 billion in FY11 to $ 155.7 billion in FY14. On the other hand, production of oil and gas from domestic fields is rather stagnant.

This is OVL’s maiden bid for an exploration acreage in New Zealand. OVL has 35 projects in 16 countries like Venezuela, Colombia, Brazil, Mozambique, Sudan, Iraq, Iran, Vietnam, Bangladesh, Myanmar and Russia.

OVL produced 8.36 million tonnes of oil and oil equivalent gas in 2013-14 against 0.252 million tonnes a decade ago. The explorer’s cumulative investment up to March 31, 2014 has crossed $22 billion. In the past less than two years, OVL has made new acquisitions to the tune of $ 4 billion, including 2.72% in the Azeri, Chirag and the deep water portion of Guneshli Fields in the Azerbaijan; 2.36% interest in the Baku-Tbilisi-Ceyhan pipeline; additional 12% in Block BC-10 at Campos Basin in Brazil; 6% stake in the Rovuma Area 1 offshore block in Mozambique from Videocon and direct 10% stake in the same Rovuma Area 1 from Anadarko.