Are The Indians Back Already?

An article in Thursday's Punch of Nigeria says an Indian firm whose iinitials spell OIL, Oil India Limited, says it is hopeful it will yet obtain a block in Nigeria's 2005 Licensing Round if a Canadian firm fails to pay the signature bonus fee.

Nigeria offered 44 blocks in that Round, which proved disappointing to some officials after many of the bidders failed to pony up the hefty bonus fees. The tax regime for the onshore and offshore blocks in the Niger Delta is also far stiffer in those blocks, leveled at 50 percent compared to 20 percent in the Nigeria-Sao Tome and Principe Joint Development Zone.

OIL said it was teamed up on its bid with Indian Oil Corp. and an unnamed local partner that qwould have 10-20 percent of the block. The company's bid came in second to that of a Canadian firm, the company told the newspaper.
Here is the article from today's editions of Punch:

India renews interest in Nigeria’s oil block

Atser Godwin

India on Wednesday renewed its interest to acquire and invest in the Nigerian oil and gas industry.

Oil India Limited- a state-run oil exploration firm, said despite its loss in the 2005 Bid Round to a Canadian firm, it was hopeful that if the Canadian firm fails to pay the signature bonus, which is a mandatory fee for acquiring the blocks, it would click the deal.

In a statement released on its website, OIL said it planned to spend $150million on global exploration and production activities on international oil blocks including few in Nigeria.

“We have already two blocks in Libya. Besides, we have acquired one block in Gabon. We are hopeful of getting one block in Nigeria,” OIL Director, (Exploration and Development), S K Patra said.

OIL is one of India’s oldest exploration firms which has significant presence in the northeast region.

The government is pursuing a policy of supporting its oil companies such as OIL and Indian Oil Corporation to explore global opportunities in exploration and production for fulfilling the country’s energy demand.

Patra restated that OIL’s bid for Nigerian blocks stands second among all bidders.

“Our Nigeria bid is also in partnership with IOC and a local company. We will share 40-45 per cent each and the local partner would have 10-20 per cent stake in the bid,” he said.

The PUNCH, Monday, January 12, 2006