India, Iran, may work together on oil and gas fields soon
The Hinduja Group and ONGC Videsh Ltd. hope to reach a general agreement with Iran for developing oil and gas fields in that country by the end of this month, Hindu Business Line reported.
OVL, the overseas investment arm of ONGC, and the Hinduja Group are looking into joining the development of the South Pars phase 12 gas fields and the Azadegan oil field in Iran.
As part of a possible deal, Iran has been offered a stake in a liquefied natural gas terminal and refinery project in India.
"Draft memorandum of understanding has already been exchanged and we are hopeful of reaching a general agreement and initiate a due diligence of the fields during the next round of talks expected by the end of this month," said Subir Raha, executive vice chairman of Hinduja Group India.
The total project cost involving fields in Iran and the LNG and refinery project in India is estimated at $20 billion.
"Sharing of development cost is a critical component of such deals, and since the methodology for this has been agreed upon, the other issues will follow," Raha said.
Legal fight between Venezuela and Exxon Mobil Corp. continues
Venezuelan President Hugo Chavez has threatened to cut off oil sales to the United States if Exxon Mobil Corp. wins its court battle to seize the government's assets, OilWeek reported.
Chavez warned that if Venezuelan assets are frozen and the country is harmed, it will stop sending oil to the United States. Volatile international relations and growing demand are keeping oil prices high.
He called the case by Exxon "economic sabotage."
"If you freeze us, if you don't stop trying to freeze, doing us damage, we can do you damage," Chavez said. "We won't send oil to the U.S. Get this, Mr. Bush, if the economic war continues against Venezuela, the price of oil will reach $200. Venezuela will take up the economic war."
Exxon Mobil is challenging Chavez for assets of state oil company Petroleos de Venezuela SA in U.S., British and Dutch courts. The company wants compensation since a multibillion-dollar oil project was nationalized under Chavez.
A British court has issued an injunction freezing as much as $12 billion in assets.
Ukraine willing to settle a gas debt worth $1.5 billion with Russia
Ukrainian First Deputy Prime Minister Oleksandr Turchynov said in return he wants a direct import agreement with the Russian gas company Gazprom, the Moscow Times reported.
Ukraine owes $500 million for the 1.5 billion cubic meters of that Russian gas, Gazprom said.
"Ukraine's first deputy prime minister Oleksandr Turchynov confirms that the country's state gas and oil company Naftogaz indeed has a debt," said a statement released from the government. "Naftogaz is ready to commit to full repayment of its debt in exchange for an agreement to sign a direct contract and relevant documents with Russia's Gazprom."
Gazprom has threatened to reduce supplies to Ukraine if the state energy company Naftogaz does not pay its debt by Feb. 11.
Some analysts said the feud between Ukraine and Gazprom is affecting gas supplies to the rest of Europe, though Gazprom denied any problems.
--
Closing oil prices, Feb.11, 3 p.m. London
Brent crude oil: $89.12
West Texas Intermediate crude oil: $88.58
--
(e-mail: [email protected])
