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Tuesday, 02 December, 2008, 21:20 GMT | more >>

Akpo uncertainty for ONGC



By Upstream staff 

India's cabinet has not approved state-owned Oil & Natural Gas Corporation's (ONGC) bid for a stake in the Akpo oilfield off Nigeria, the country's Finance Minister said.

"It has not been approved," Palaniappan Chidambaram said, but declined to clarify whether the decision had been deferred or the proposal had been rejected outright, reported Reuters.

But he told Indian reporters the Cabinet Committee on Economic Affairs had approved ONGC's proposal to invest $820 million in "Project Sugarloaf" if it makes a successful bid.

"The purchase consideration includes a payment of $330 million for acquiring the full equity of ExxonMobil's Brazilian subsidiary and $490 million as cash calls for the company's share of project cost, appraisal and further exploration," the government said in a statement.

ONGC was hopeful of reaching a deal with Nigerian independent South Atlantic Petroleum to acquire the stake in Akpo.

French supermajor Total is the operator of the field, which is expected to come on stream by 2008.


Friday, 16 December, 2005, 05:14 GMT  | last updated: Friday, 16 December, 2005, 09:46 GMT

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