ONGC Videsh Ltd among firms shortlisted for fuel exploration in Afghanistan

NEW DELHI: ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), is among eight international energy firms shortlisted by Afghanistan for exploration of oil and gas in northern part of the country.

Afghanistan's Ministry of Mines has shortlisted ONGC Videsh Ltd (OVL) along with US' Exxon-Mobil, Kuwait Energy and Turkey's TPAO for six exploration blocks in the western portion of the Afghan-Tajik basin, lying towards the northern part of the country, industry sources said.

Other firms shortlisted include Dubai-based Dragon Oil, Kuwait Energy Plc, Petra Energia of Brazil, Pakistan Petroleum and Thailand's PTT.

The shortlisted firms will now be required to submit their bids by October 31, sources said, adding awards for the six exploration blocks were likely to be made by early 2013.

In all 20 companies had showed interest in exploring for oil and gas in Afghanistan. Of these, eight has been shortlisted.

According to Afghanistan's Mines Ministry, the six blocks on offer are estimated to hold several hundred million barrels of oil equivalent reserves.

More than 60 geologic structures that may contain oil or gas have been identified in the six blocks, the ministry says claiming the blocks in the northern part of the country have high potential.

The geology of northern Afghanistan is similar to the vast hydrocarbon reservoirs of Turkmenistan, Uzbekistan, and Tajikistan across the northern border, it claimed.

According to the US Geological Survey, Afghanistan could be sitting on largely untapped resources of up to 36 trillion cubic feet of gas, 3.6 billion barrels of oil and 1.3 billion barrels of natural gas liquids.

Last year, Afghanistan had signed a deal with China National Petroleum Corporation (CNPC) for three blocks in the Amu Darya basin.

The Kashkari, Bazarkhami and Zamarudsay blocks in the Amu Darya basin are estimated to hold 87 million barrels of oil.