IOC, OIL eyeing exploration possibilities in Nigeria

New Delhi, Jan 16 (UNI) State-run Oil IndianOil Corporation (IOC) and Oil India Ltd (OIL) today announced crude exploration and refining possibilities in the oil-rich West African nation of Nigeria.

''OIL and IOC have evinced their interests in the Nigerian oil sector. While OIL has evinced interest in downstream sector, IOC is more inclined towards acquiring a refinery at Port Harcourt,'' Nigerian Oil Minister Edmund Daukoru told reporters here today.

IOC has also been invited by the country to set up a new grassroot refinery capacity of 2,00,000 barrels per day.

The announcements will be made in due course, he added.

''Nigeria has targeted refining of 40 per cent of the production by the end of this year, which is unlikely to be met. The year 2008 is a more realistic target. By 2010, 70 per cent of the domestic production is sought to be refined,'' Dr Daukoru said after his meeting with Petroleum Minister Murli Deora.

Dr Daukoru said 50-60 blocks will be offered for the next round of licensing in mid-January following huge demand from Asian countries to invest in the country's downstream sector.

Of these, four blocks might be alloted to India. The country has already allocated two oil blocks to ONGC-Mittal, joint venture between Oil and Natural Gas Corporation (ONGC) and L N Mittal Group company, in 2005.

''This could be extended to one more seriuos Indian company as a gesture of goodwill,'' Dr Daukoru said.

Nigeria has also 'encouraged' India to invest in whole range of activities including developing infrastructure, fertiliser plants, gas plants, production of components applicable to oil industry and to take equity in liquiefied natural gas (LNG), he said adding India has the necessary technology while Nigeria has required resources.

Earlier speaking at a session at the ongoing Petrotech Conference 2007, the Nigerian oil minister said OPEC will watch the effect of the five lakh barrels a day cut on the market effectual from February before taking any other move.

UNI