UPDATE: India Interested In Buying BP Assets In Vietnam - Oil Minister

21st Jul 2010 13:26

By Rakesh Sharma Of DOW JONES NEWSWIRES (Adds details, background) NEW DELHI (Dow Jones)--India is interested in buying BP PLC (BP) assets in Vietnam, Oil Minister Murli Deora said Wednesday, as the country looks to secure more energy supplies for its fast-expanding economy. "We are trying," Deora told Dow Jones Newswires via telephone from Vietnam, adding that Indian state-run companies will hold talks with PetroVietnam--the largest oil producer and second-largest power producer in Vietnam--about acquiring BP assets. India is heavily dependent on overseas oil and gas--the country imports four-fifths of its crude oil requirement--and BP's decision to sell assets to help pay for damages related to the Gulf of Mexico oil spill presents a promising investment opportunity. BP announced Tuesday that it has agreed to sell assets in the U.S., Canada and Egypt to U.S. oil company Apache Corp. (APA) for $7 billion. BP said it also plans to sell its gas fields and a pipeline in Vietnam, as well as exploration licenses in Pakistan. Deora is in Vietnam for a meeting of east Asia energy ministers. Oil Secretary S. Sundareshan and the heads of state-run Oil & Natural Gas Corp. (500312.BY), Indian Oil Corp. (530965.BY) and GAIL India Ltd. (532155.BY) are also attending the meeting. A statement issued by the government Tuesday said Oil India Ltd. (533106.BY), Indian Oil and GAIL will look for investment opportunities in Vietnam's oil and gas sector. The Press Trust of India reported Wednesday that India is pitching for BP's stake in Vietnam's Nam Con Son gas project. According to BP's website, the oil major operates the Nam Con Son gas project, which includes Lan Tay and Lan Do gas fields in Block 06.1, as well as a pipeline and a gas-fired power plant. BP also produces and distributes lubricants in Vietnam, and it has a contract to supply crude to Dung Quat, Vietnam's first refinery. ONGC holds 45% in Nam Con Son's Block 06.1, while BP has 35% and state-run PetroVietnam holds 20%, the website of ONGC's overseas investment arm, ONGC Videsh Ltd, showed. The consortium produces about 12-14 million standard cubic meters of gas a day, supporting about 30% of Vietnam's power generation capacity, India's oil ministry said in a statement Tuesday. PetroVietnam Deputy Director Nguyen Tien Dung separately told Dow Jones that his company hasn't held talks with BP on the sale of BP's assets. While ONGC Videsh and Oil India might look to take over BP's stake in the gas fields, GAIL is interested in BP's stake in the pipeline, Oil Secretary Sundareshan told Press Trust of India. Apart from Block 06.1, ONGC Videsh also has two exploration blocks in Vietnam's Phu Khanh offshore basin. -By Rakesh Sharma, Dow Jones Newswires; +91-11-4356-3334; [email protected] (END) Dow Jones Newswires July 21, 2010 08:26 ET (12:26 GMT)